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9th July, 2020

Needs and

Challenges of

Apple Value Chain

in Balochistan

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Acknowledgements

The author is thankful to all the individuals and institutions for their help and cooperation

during this endeavor. Without their help this research study would not have been

possible. Special thanks to the Japan International Cooperation Agency (JICA) for financing

and facilitating this important study aimed to analyze the needs and challenges of apple

value chain in the selected districts of Balochistan. I would like to acknowledge Mr Gabor

Monlar, Associate Industrial Development Expert at UNIDO for his continuous support,

guidance and encouragement from the start of the study till its completion. I would also

like to thank Mr Omar Khan, Research Analyst UNIDO Islamabad for the logistic and other

arrangements for the conduct of the Focus Group Discussions in various districts of

Balochistan. Special thanks are extended to the officials of various government

departments representing the governments of Balochistan; especially the Balochistan

Agriculture and Cooperatives Department, Balochistan Food Safety Authority, Director

Market Committee Quetta who welcomed us into their offices and shared invaluable

information. I am also grateful to the Deputy Directors Agriculture Extension of district

Quetta, Killa Abdullah, Pishin, Killa Saifullah and Kalat for their support in the conduct of

Focus Group Discussions. I am highly indebted to various stakeholders such as Apple

farmers, politicians, NGOs, and various marketing actors such as input dealers, preharvest

constractors, commission agents, wholesalers, retailers, exporters, cold storage owners,

transporters, packaging material sellers for sparing their precious time and sharing useful

information.

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Table of Contents

Table of Contents ................................................................................................................................ 3

List of Tables ........................................................................................................................................ 4

List of Figures ...................................................................................................................................... 4

Abbreviations ...................................................................................................................................... 5

1. Introduction................................................................................................................................... 14

1.1 Description of the project ...................................................................................................... 14

1.2 Objective of this assignment .................................................................................................. 14

1.3 Background ............................................................................................................................. 14

2. Methodology of the assessment ................................................................................................... 17

2.1 A glimpse of UNIDO value chain approach ............................................................................ 17

2.2 Data collection mechanism .................................................................................................... 19

3. Value chain analysis .................................................................................................................. 26

3.1 Overview of the value chain in Pakistan ............................................................................... 26

3.2 Overview of the value chain in the province ......................................................................... 36

3.3 Enabling environment ............................................................................................................ 49

3.4 Socioeconomic characteristics of farmers ............................................................................. 68

3.5 Challenges of apple value chain and solution ....................................................................... 70

References ......................................................................................................................................... 75

Appendix- A: Focus Group Discussion ............................................................................................... 79

Appendix-B Survey for Apple Value Chain Actors in Balochistan ................................................. 88

Appendix C: Primary products in Balochistan (2017-18) .................................................................. 90

Appendix D: Primary products in district Quetta .............................................................................. 91

Appendix E: Primary products in district Killa Abdullah .................................................................... 92

Appendix F: Primary products in district Pishin ................................................................................ 92

Appendix G: Primary products in district Killa Saifullah .................................................................... 93

Appendix H: Primary products in district Kalat ................................................................................. 94

Appendix I: District and Tehsil-wise distribution of apple value chain actors .................................. 94

Appendix J: List of stakeholders interviewed .................................................................................... 97

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List of Tables Table 1: District wise distribution of sampled apple farmers and cold storage owners .................. 23

Table 2: District wise distribution of sampled apple farmers based on farm size ............................ 24

Table 3: Distribution of sampled marketing middlemen .................................................................. 24

Table 4: Apple area, production and trade during the period 2012-13 to 2016-17 ......................... 26

Table 5: Value of agriculture produce in the province during 2017-18 (PKR Million) ...................... 36

Table 6: Gross margins analysis of apple (per acre) .......................................................................... 65

Table 7: Marketing costs and margins for apple (per kg) ................................................................. 66

Table 8: Challenges of apple value chain, solutions and roadmap ................................................... 71

List of Figures

Figure 1: District wise share (%) of apple production in Balochistan................................................ 15

Figure 3: Stakeholders survey in Balochistan .................................................................................... 20

Figure 4: Focus Group Discussion in Quetta, Killa Abdullah and Pishin districts .............................. 22

Figure 5: Focus Group Discussion Killa Saifullah and Kalat districts ................................................. 23

Figure 6: Apple production in Pakistan (2016-17) ............................................................................ 27

Figure 7: Apple exports and imports (tones) during 2017 ................................................................ 28

Figure 8: Apple storage in Killa Abdullah .......................................................................................... 53

Figure 9: Map of apple value chain ................................................................................................... 64

Figure 10: Socioeconomic characteristics of FGD participants ......................................................... 68

Figure 11: Dependence on agricultue and access to mobile phone, televisión and newspaper ...... 69

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Disclaimer

This report was written by Dr. Syed Mohammad Khair, apple value chain expert, PAFAID

in collaboration with the UNIDO Experts.

This report is prepared under Japan International Cooperation Agency (JICA) funded

Project for Agri-food and Agro-industry Development Assistance in Pakistan (PAFAID),

implemented by UNIDO. Readers are encouraged to quote and use this study for

educational, non-profit purposes, provided the source is acknowledged. The information

presented does not reflect the position of United Nations Industrial Development

Organization (UNIDO) Secretariat or JICA.

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Abbreviations

ACIAR Australian Centre for International Agricultural Research

BAC

BFSA

BUITEMS

CPEC

Balochistan Agriculture College

Balochistan Food Safety Authority

Balochistan University of IT, Engg. and Management Sciences

China Pakistan Economic Corridor

DDAE

DFAT

FAO

Deputy Director Agriculture Extension

Department of Foreign Affairs and Trade

United Nations Food and Agriculture Organization

FATA Federally Administered Tribal Areas

FGD

GDP

Focus Group Discussion

Gross domestic product

GoB

GoP

Government of Balochistan

Government of Pakistan

JICA Japan International Cooperation Agency

MC

MPDR

MNFSR

Ministry of Commerce

Ministry of Planning, Development and Research

Ministry of National Food Security and Research

MoC

NGO

PACCD

PFAID

PHDEC

SMEs

SPS

TDP

Ministry of Commerce

Non Government Organization

Pakistan Agriculture Cold Chain Development

Agri-food and Agro-industry Development Assistance

Pakistan Horticultural Development and Export Company

Small & Medium Enterprises

Sanitary and Phytosanitary measures

Temporarily Displaced Persons

UNIDO United Nations Industrial Development Organization

VC Value chain

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Measurement Table

1 US Dollar 160.38 Pakistani Rupees

1 Square Yard 9 Square foot

1 Ton 1000 Kilagorams

1 acre 43560 dquare foot

1 Hectare 2.4711 Acres

1 Mond 40 Kilograms

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Executive Summary

Balochistan is blessed by having a wide variety of climatic and agro-ecological zones, thus

being ideal for raising various fruits and vegetables. Horticultural crops make an important

contribution to the agricultural sector, especially the fruit and vegetable sector. In

addition, this sector offers sufficient job opportunities and economic potential for

increasing farming community incomes as well as contributing to local food security.

Apple is the major fruit of Balochistan and ranks first in terms of area and production.

Among other fruits, has significant role in terms of the number of people employed,

revenue generation and returns. Therefore, based on the quantitative assessment of

preliminary selection, apple value chain was selected for further interventions in

Balochistan. The apple production districts of Quetta, Killa Abdullah, Pishin, Killa Saifullah,

and Kalat were selected for this project through stakeholders’ consultation, also serving as

the main production areas of the province.

This study aims to highlight the current needs and challenges of the apple value chain in

Balochistan and suggest measures for the uplifting of the value chain. This study also

provides an opportunity to inform the policy makers and involve them for the resolution

of the sector’s current challenges and needs. It also aims to identify the governance issues

with focus on institutional capacities and practices within the enabling environment,

including the private sector and individual farmers.

Both primary and secondary data were used for this study. As part of this, focus group

discussions were held in all the five districts. Stakeholders’ survey was also conducted

with some 18 stakeholders including transporters, packaging material producers and

sellers, researchers, government officials etc. Moreover, individual survey was also

conducted for data visualization purpose and some 676 apple farmers, 110 contractors

and 27 cold store owners were interviewed in different districts. Among the marketing

middlemen, 25 commission agents/Arthi, 33 wholesalers, and 100 retailers were

interviewed in Quetta wholesale market.

For data analysis, gross margins analysis, marketing costs and marketing margins analysis

were undertaken to examine the production and marketing efficiencies through the value

chain. While SWOT analysis was used to systematically identify the external and internal

factors influencing apple value chain in the selected districts. Following are the results

drawn from FGD survey conducted:

The survey results show that the average education level of FGD respondents was around

ten years, showing sufficient literacy level to understand the purpose and importance of

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the survey. The average family size was quite high with the overall average of 30 due to

the joint family system.

The apple area owned by farmers in terms of the percent of total farm area ranged

between 45 to 75 % in different districts. On average, when all the districts were taken

together, it was more than 60 % of the farm area, with the highest ratio in Killa Abdullah

district (more than 75%), followed by Kalat, Killa Saifullah, Quetta and Pishin. This is

showing the importance of apple in the cropping pattern which on average occupies more

than 50 % of farm area.

The majority of respondents had agriculture as primary profession and source of

livelihood in all the districts. The highest proportion of dependency on agriculture was

reported in district Killa Abdullah, followed by Pishin, Kalat, Quetta and Killa Saifullah. The

other sources of livelihoods included trade and business, government Jobs, and labour

Jobs. The results further show that majority of respondents own mobile phones which

shows the access of apple farmers to the information source.

During the FGD survey (2020), the apple farmers reported the negative impact of large-

scale apple import from Iran and Afghanistan to the local market. Further, the data

analysis showed that during 2017, Pakistan was the net importer of apple as it imported

78,112 tones with major quantities from Afghanistan, Iran and China while exported only

361 tons of apple. The reasons for low apple exports were insufficient packaging facilities

and non-adoption of international standards and certifications. Additionally, the

prevalent production and marketing system of food is not well-matched with the sanitary

and phytosanitary (SPS) requirements given the weak and fragmented SPS controls

measures taken by Pakistan with its neighbouring countries.

On the marketing side, apple grading, packing and marketing standards are not followed

and low and good quality apple is very often mixed. The produce is marketed in a

traditional manner and cold storage facilities are poor leading to high post-harvest losses.

Moreover, Balochistan does not have adequate apple processing, grading and packing

facilities, and a very small proportion of apple is processed into value-added products such

as apple pulp, jam, jelly, juice, squashes, drinks, clear concentrate and apple preserves. At

the moment such industry is not present in Balochistan.

Agriculture has become a provincial subject after the adoption of 18th amendment in the

constitution of Pakistan which requires the provinces to make necessary arrangements for

the development of the sector. However, many federal policies and strategies are set to

prioritize and incentivize the horticulture industry through support on the imports of agro

processing machinery, measures for boosting exports etc.

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Over the past few years, dozens of projects have been completed in various parts of

Pakistan on various value chains improvement such as livestock and wool, fruits and

vegetables, furniture and other products. This project is a unique project targeting apple

value chain in Balochistan and cattle meat value chain in Khyber Pakhtunkhwa.

Producers as well as local contractors’ trade apples across the country to various markets,

often to other provinces of the country. The two most popular marketing networks, such

as producer-led and local pre-harvest contractor led, are prevailing in the province.

According to the FGD survey (2020), pre-harvest contractors mostly sell apples in Lahore

and Karachi markets being the largest markets, while apple farmers sell their produce in

Gujranwala, Faisalabad, Karachi, Islamabad, Peshawar, Lahore, Quetta and other

wholesale markets.

The fruit and vegetable cold storage capacity in Balochistan province has improved over

the last few years due to other capacity building investments, but still its capacity is far

below the requirements. To store apple, there are some 12 cold storage facilities in

Quetta, 14 in Kill Abdullah, and 1 in Pishin. However, a lot more work needs to be done as

there are no cold storage facilities in Killa Saifullah, Ziarat and many other districts.

Due to financial constraints, lack of technical personnel and lack of training, currently the

Agriculture Extension Department is struggling to deliver its functions. Moreover, the

farming community it serves is sparsely distributed throughout the province which makes

the dissemination of best practices more difficult.

The institutional sources of credit that includes commercial banks and other public

institutions are availed only by some 20-30 % apple producers due to collateral

requirements, lengthy procedures, less accessibility and high interest rates. However, the

remaining 70-80 % relies on non-institutional sources of credit to meet production,

marketing and other expenses. These sources include crop inputs dealers, Arthis

(commission agents) and other marketing middlemen such as pre-harvest contractors and

cold store owners. The role of inputs dealers, commission agents and cold store owners is

very important as they provide necessary capital at the time of need to fuel the apple

economy. However, this makes apple farmers a bit disadvantaged due to the

compromised prices.

Climate change related challenges are more severe in Balochistan due to poor resilience

and adaptive capacity with frequent climate shocks in the forms of droughts. There are

various factors responsible for low adapting capacity against the adversaries of climate

change such as lack of provincial climate change related policy, less awareness about

climate change, poor governance and insufficient focus on climate change in education

and research.

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In case of Balochistan, where mostly traditional varieties such as Tor Kulu, Shin Kulu, Kaja,

Amri, Mashadi etc are grown, require 7-10 years to start fruit bearing and have high

chilling requirement.

Transporters are mostly local people who use ordinary goods trucks to supply apple to

different markets. Some 500 to 600 creates are loaded into a small truck, while 850-1000

crates are loaded into a large truck. This mode of transportation causes breakage of apple

crates.

Packaging material is not produced locally rather ready-made packaging material is

imported from Karachi, Lahore, Faisalabad etc. Two types of packaging material are used

most often, wooden crates and carton boxes. For wooden crates the wood sheets are

imported from Punjab along with skilled labour to nail the wooden sheets to prepare

wooden crates. Cartons are ready to use and available with many packaging material

sellers.

Around 10 % of apple produced in Balochistan is marketed to Quetta wholesale market

while the remaining 90 % is marketed to the distant wholesale markets such as Lahore,

Karachi, Islamabad, Dera Ghazi Khan, Rawalpindi, Multan, Haiderabad, Gujranwala, Kohat,

Peshawar and other markets and also stored over there due to less storage capacity in

Balochistan.

Gross Margin analysis is a very important tool for determining the level

of farm profitability and efficiency. The per kg gross margin at farm gate was Rs. 11.30 at

lower altitudes and 39.21 at higher altitudes, showing three times larger returns from

apple. The analysis of various cost components in the variable/direct costs shows that

largest cost incurred was on irrigation followed by pesticides, labour and fertilizer and

farm-yard manure (FYM) due to the use of inefficient production practices.

The share of apple farmers in consumer price was 44 % and 32 % of the consumer paid

price at high and low altitudes implying that 56 % and 68 % of the consumer prices goes to

different market middlemen and spent on marketing costs. This is questioning the

efficiency of the marketing system, because the ultimate producer gets a smaller share

and the actual value addition of the middlemen limited to transportation and marketing

with buyers.

Pre havest losses and post harvest losses were 5% and 20% of total production. Preharvest

losses mainly occurs during the production stage due to fruit dropping, pest and diseases

attack, drought like conditions, high temperature, inappropriate variety selection. While

post harvest losses include the fruit losses during harvesting, fruit picking, handling,

packaging, transportation and processing. According to estimates, the preharvest and post

harvest losses both together worthed PKR 7816 million at 2018-19 prices.

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Based on the above findings, following main recommendations are made for the

improvement of apple value chain:

As shown by the gross margin and marketing costs and margins analysis, apple grown

at high altitudes gives double returns when compared to returns from apple produced

at low altitudes due to its better quality amid favourable climatic conditions, less pre-

and post-harvest losses, less diseases attack etc. For this reason, it is suggested that

the project interventions may be made keeping in mind the elevation of the area and

the type of apple produced;

To face drought and depleting water, high density apple with high efficiency irrigation

system are recommended;

Introduction of high density modern cultivars with less chilling requirement and less

water requirement such as dwarf cultivars and M9 root stock on drip irrigation.

Establishment of nurseries with certified rootstocks based on market and consumer

preferences.

To improve quality and safety compliance of fresh apple, farmers and extension agents

are suggested to be further trained on tree pruning, thinning and other production

practices and inputs use in the form of a structured and developed Good Agriculture

Practice (GAP1)

Training of apple farmers and extension agents on the selection of cultivars suitable

for a particular area based on climatic conditions

Training of relevant stakeholders on total soluble solids (TSS), firmness test, and

maturity index etc. of apple to enable them to choose right harvesting time

Establishment of apple value addition facilities such as apple processing line and apple

juice, jam etc. near the main production areas

Provision of apple harvesting and collecting ladder and bags

Training of fruit pickers and handlers on proper fruit picking, packaging and handling

Provision of modern packaging material, pre-cooling facilities, refrigerated transport

and mobile graders

Improvement of compliant cold storages facilities and supporting additional grading

practices

Establishment of a mechanism for the provision of real-time market price and other

information from the other value chain actors to apple producers

Establishment of product testing practices in the form of an accredited laboratory to

reduce costs for the farmers;

1 Those principles applied on-farm production and postproduction processes for safe and healthy food and non-food agricultural products, while taking care of economic, social and environmental sustainability (FAO, 2016)

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Linking local universities with the industry to conduct research and introduce new

solutions for the sector;

Initiatives for the drafting of Balochistan horticulture policy and value chain strategy,

specifically for apple

Improved control on imported apple

Training on cottage industry for women and youth empowerment

Training for women on product value adding practices for local markets and income

generation.

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1. Introduction

1.1 Description of the project

The aim of this project is to enhance the productive and compliance capacities of relevant

actors in the apple value chain in Quetta, Killa Abdullah, Pishin, Killa Saifullah, and Kalat

districts of Balochistan. The project will provide support to the relevant governmental

bodies to increase their capacity to offer suitable services to the industry in a sustainable

way and to introduce pilot application in collaboration with the industry on best practices

in value addition and compliance for improved livelihoods of participants in the value

chains, including food manufacturers and processors. This project is funded by the

Government of Japan through the Japan International Cooperation Agency (JICA). UNIDO

provides technical support to improve the quality and safety, value addition and

productivity, which in turn can contribute to better marketability, higher profit, and access

to high-end markets. The project will work on reducing food losses and add more value to

the products through improvement of the value chain management which will lead to

enhanced livelihoods, socioeconomic uplift and stability in the targeted provinces. The

long-term goal of this project in Balochistan is to rejuvenate the livelihood of apple value

chain actors through the introduction of best practices in terms of compliance and value

addition.

1.2 Objective of this assignment

This study aims to highlight the current needs and challenges of the apple value chain and

suggest measures to operate in an economically and socially more inclusive manner to be

able to contribute to the economic uplifting of selected target districts in particular and

Balochistan province in general.

1.3 Background

Agriculture sector provides livelihood to more than half of the population of Balochistan

by contributing one-third of the provincial GDP and 40 of the labor force. Balochistan’s

favourable climatic conditions and geography enables it to produce fruits of high quality,

therefore named as fruit basket of Pakistan. The important fruits produced are apple,

dates, apricot, grapes, pomegranate, almond etc and exported in large volumes to other

provinces and abroad. Apple is the major fruit of Balochistan and some 87% of the total

production comes from Balochistan (GoB, 2016-17). Apple is grown in Balochistan on

87171 hectares (39 % of the total fruit area) with a production of 576,376 tonnes (52 % of

total fruits production) in Balochistan, thus ranks first in terms of area and production

among fruits (GoB, 2016-17) and have significant role in terms of the number of people

employed, revenue generation and returns (GoB, 2016-17). Within Balochistan, Killa

Saifullah district is the major producer of apple in terms of production, followed by

Mastung, Pishin, Ziarat, Killa Abdullah and Kalat respectively as shown by Figure 1. Apple

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value chain is the largest value chain in terms of employment and revenue generation in

Balochistan.

Figure 1: District wise share (%) of apple production in Balochistan

Source: GoB (2016-17)

Value chain refers to all the activities essential to bring a product or service from the start

through the different phases of production to delivery to final consumers and after use

disposal (Kaplinsky 1999; Kaplinsky and Morris 2001). The value chain analysis is superior

in terms of incorporating and analyzing all factors/stages starting from the sowing of a

crop to when it reaches the hand of ultimate consumer.

Balochistan produces fruits of high quality but the supply chains of fruits are faced with

constraints such as use of traditional production and marketing technology, climate

change issues (reduction in precipitation, rise in temperature, scarcity of irrigation water),

low quality crop inputs, energy shortage to run irrigation tube wells, inappropriate

cropping patterns, poor road infrastructure, obsolete packaging material, low market

prices and rising marketing costs, negligible amount of value addition and fruit processing

in Balochistan, lack of cold storage and modern transportation facilities, high pre- and

post-harvest losses, expensive refrigerated transportation and low margins of fruits

producers. As stated above, apple capture very important place in the rural economy of

Balochistan for providing livelihood. The apple value chain is no exception in terms of

problems faced which are eroding the incomes of various actors in the chain specially the

apple producers.

Although Balochistan has comparative advantage in the production of many high quality

fruits but the sector which is dominated by private sector is least developed in terms of

pre- and post-harvest handling of fruits. From the harvest of produce to its grading,

packaging, processing etc., near to no modern practices or technology use can be seen.

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Thus post-harvest losses in fruits and vegetables are great about 15-30% (Aujla et al.,

2011; Shahzad et al., 2013), and a huge proportion of the produce is wasted, cost millions

of rupees every year. Some 10-15% of fruit and vegetables get wasted due to lack of

processing facilities. The apple exports of Pakistan had been minimal and on an average

less than half a percent of its total production. The main reason for low export has been

the inability of our apple producers to supply the produce as per the international market

requirements due to lack of grading, standardization, treatment, and packaging as per

international standards (GoB, 2018-19).

In addition, the institutional support from the various government and non-government

organizations is insufficient in the production and marketing stage, leaving the fruit

producers at the mercy of vagaries of weather, middlemen, and production gluts resulting

low prices across the value chain (GoB, 2020).

To understand the apple value chain’s problems, a well-coordinated research approach

has been lacking. This study will provide an opportunity to understand and pinpoint the

constraints faced by the various stakeholders and will provide an opportunity to inform

the policy-makers and involve them for the resolution of the sector’s current challenges

and needs. The end result will be increased productivity, reduction in the pre- and post-

harvest loss of fruits, more value addition and the resulting increased share of various

functionaries involved in the value chain as a result of actions taken by the project based

on the study findings.

Many studies have been undertaken in the past encompassing the production, marketing

and export aspects of many fruits and vegetables in Balochistan. But no integrated

approach has been used so far to analyze the whole apple value chain. This value chain

analysis will provide an opportunity to study the issues of the sector in depth and suggest

measures to improve the situation on ground that has been almost unchanged in the near

past, resulting in intact issues with the same severity as used to be a decade ago. One of

the reasons for the issues may be the non-comprehensive strategies focused mostly only

one certain aspect of value chain i.e., either production, marketing, processing or export

instead of the whole value chain.

This study seeks to undertake the VC analysis of Apple in Balochistan to highlight the

bottlenecks in the entire value chain and suggest appropriate measures for the

improvement. Keeping in view the importance of fruits sector in Balochistan, this study is

first of its type covering all the aspects of important fruits enterprises from the farm gate

to the consumption. This study will also identify the governance issues with focus on

institutional capacities and practices from agriculture extension service providers, the

private sector and the individual farmer. At the end of the document, a vision along with a

roadmap for the apple value chain will be introduced as part of which PAFAID will

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prioritize the most essential investments in consultation with the Government of Pakistan,

Government of Balochistan and the local apple sector.

2. Methodology of the assessment

In order to understand the overall trends of industrial reorganization and identify change

agents and leverage points for policy and technical interventions, UNIDO value chain

analysis is used as an overall analytical tool (UNIDO, 2009). This methodology was

complemented with additional data science tools to identify current socio-economic

status quo, including the situation of youth and women in the local value chain, and

compliance practices among actors.

2.1 A glimpse of UNIDO value chain approach

The UNIDOS’s systematic value chain approach is used to analyze apple value chain aimed

to shed light on the needs and challenges of the apple value chain and suggest measures

to improve its performance using the following steps:

i. Selecting and prioritizing of the value chain that offers the most promising

prospects for economic growth and poverty reduction

ii. Mapping value chains to obtain a clear understanding of the sequence of

activities and the key actors and relationships involve

iii. Analyzing the value chain technological capacities to assess the value chain

production system and tools

iv. Analyze the value chain economic performance and competitiveness

v. Formulating an upgrading strategy for the selected value chain

vi. Implementing the upgrading strategy, monitoring and impact assessment

for the selected value chain

2.1.1 Selection and prioritization of apple value chain

Value chains uniquely integrate natural sources of food and fiber supply with the

dynamics of their demand. For expanding the leading role played by agriculture in the

economic growth and poverty reduction, effective agro-value chains are used as a means

of the development of agro-industries by many policy makers. The agro-value chains

development often have positive impact on jobs creation through off-farm processing and

income diversification in rural and urban areas. Smallholder farmers get benefited through

value chains in the form of improved market access and formation of linkage to small and

medium enterprises (SMEs) (UNIDO, 2019). Through reducing post-harvest losses and

prolonging the shelf life of food and fibers, value chains helps build up responsible and

sustainable relationships among value chain actors (UNIDO, 2019).

The focus of this value chain analysis is on selected districts of Balochistan which are still

considered as the center of apple production as shown by the agriculture statistics data

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(GoB, 2018). An early rapid appraisal of value chains was undertaken by involving a broad

range of stakeholders including government officials, private sector service providers and

associations etc. by UNIDO. The apple value chain was selected for Balochistan based on

its relative importance from socio-economic perspective. The selection process of the

value chains was divided into two phases: (1) shortlisting the most potential value chains

based on the criteria of production volume and concentration of sectorial production etc.

and (2) analyzing the shortlisted value chains as per the selection criteria.

Embracing the above methodology, a mix of social and economic indicators was used to

identify the most potential value chain for PAFAID intervention. These are given as

follows:

Production level: The selected commodity is produced in enough quantity to

comply with the requirements of domestic and international buyers, avoiding any

food security issue due to sales or trade.

Export potential: In the value chain, adequate practices be followed in terms of

sanitary and phytosanitary (SPS) and technical-barriers to trade (TBT) measures;

Existence of required enabling environment: The existing enabling environment

which includes soft infrastructure, such as supporting services (certification and

agricultural extension services), laws, standards, human resources and availability

of proper financial or loan schemes for farmer) and also hard infrastructure, such

as controlled atmosphere storage and transportation, road systems etc.

Number of female and male farmers involved in the value chain to ensure the

gender balance

Potential involvement of both genders to ensure the social inclusiveness of the

intervention, and supporting more vulnerable groups, such as youth and women.

Relevance to country priorities and highlighted as strategic goods in governmental

policies and strategies.

Learning from previous practices and recommendations and building on a

development status acquired in the past for the impact of the project.

2.1.2 Selection of districts

Based on the criteria presented in section 2.1.1 and the quantitative assessment of

preliminary selection, apple value chain was selected for interventions in Balochistan. The

apple production districts of Quetta, Killa Abdullah, Pishin, Killa Saifullah, and Kalat were

selected for this project through a stakeholder consultation with the officials from the

Department of Agriculture and the Japan International Cooperation Agency (JICA). In each

district, main apple production tehsils2 and the number of apple producers were identified

2Tehsil is an administrative unit comprised of union councils, while a union council is made of many

villages. Tehsils may contain villages or towns and cities.

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with the help of relevant Deputy Directors Agriculture Extension (DDAE). Based on their

relative share, the sample of apple producers was selected for interview.

2.2 Data collection mechanism

Primary and secondary data are used for this study. The primary data were obtained from

the interviews with apple producers and other related stakeholders, which are explained

in more detail in this section. Afterwards, group interview were conducted jointly by a

consulting company called Impetus Advisory Service, which was selected by UNIDO for

this service and the Department of Agriculture Extension. The stakeholders survey was

conducted by the UNIDO apple value chain expert, while the individual value chain actor

level survey was conducted by Impetus Advisory Group. The stakehodlers survey and FGD

results are used in this report while the the individual value chain actor survey results are

used for data visualization purpose.

For collecting secondary data, various technical reports were reviewed to complement the

primary data. The reports were obtained from government offices as well as other

international institutions and agencies, websites, libraries etc. The details can be seen in

the reference list.

2.2.1 Questionnaires design

To collect the required information for the Focus Group Discussion (FGD) and visualization

purpose from different actors involve in apple value chain (apple farmers, transporters,

packaging material producers and sellers, commission agents, wholesalers, retailers, cold

storage owners, pre-harvest contractors, exporters, semi structured questionnaires were

designed by the National Apple Value Chain Expert and the Impetus Advisory Group. The

aim was to explore the value chain links between all major actors and the existing level of

compliance/regulation at each step (Appendix B). The questionnaires were also shared

with a gender expert to ensure the adequate language and capture of the data as much as

possible. The questionnaires were pretested prior to data collection.

2.2.2 Stakeholders survey

The stakeholders survey was conducted December, 2019 and January, 2020 (list of

stakeholders attached as Appendix-J). An interview schedule was used to interview the

important stakeholders/key informants involve in apple value chain to obtain information

about the challenges of the apple value chain. These included progressive farmers,

exporters, packaging material sellers, NGOs people, government officials, gender experts,

members of farmers organizations and transporters (Photographs of the interview are

20

given as Figure 2) and contributed the framing of the value chain problems as well as the

design of detailed questionnaires.

Figure 2: Stakeholders survey in Balochistan

2.2.3 Focus group discussion (FGD)

A detailed semi-structured questionnaire was prepared and translated into Urdu to collect

the data from the apple farmers groups. Before the use, the questionnaire was pretested

for validity test. Focus group interviews comprised of groups of some 10-15 apple

21

growers conducted in Quetta, Pishin, Killa Abdullah, Killa Saifullah and Kalat district.

Selection criteria for the FGD respondents included the farm size, apple farming, Apple

área as % of total farm área, education, and the Department of Agriculture was requested

to pay attention to those during extending the invitation to these sessions. The deputy

directors of agriculture extension (DDAE) of the respective districts helped select the

apple growers for the focus group interview (to ensure diversity and have a representative

group) and they did the necessary arrangements for the FGD. However, it must be

mentioned that due to the cultural sensitivity, the involvement of women was not posible

in the FGD along with men. To overcome this limitation, the gender analysis must be read

in conjunction with this analysis.

The FGD questionnaire included questions on demographic and socioeconomic

characteristics, cropping pattern, apple value chain related information, role and

involvement of gender and youth in apple value chain and issues of apple value chain etc.

(Appendix-A). The survey was conducted by the UNIDO apple value chain expert,

Department of Agriculture Extension and UNIDO subcontractor in February, 2020

(Photographs are given as Figure 3 & Figure 4). Voice recorders were used with the prior

permission of the FGD members so that any important information would not be missed.

This report is primarily based on the information collected through stakehodlers survey

and FGD.

FGD Quetta held on 24/02/2020

22

FGD Killa Abdullah held on 25/02/2020

FGD Pishin held on 26/02/2020

Figure 3: Focus Group Discussion in Quetta, Killa Abdullah and Pishin districts

FGD Killa Saifullah held on 27/02/2020

23

FGD Kalat held on 28/02/2020

Figure 4: Focus Group Discussion Killa Saifullah and Kalat districts

2.2.4 Sampling frame and sampling method used for the survey of apple growers and

other actors

The complete list of apple growers with farm details, or population size using statistical

terminology, was not available with the district agriculture department due to which the

use of probability sampling technique was not possible. However, an approximate number

of apple growers in different districts were obtained from the office of agriculture

extension department (Table 1). Non-probability sampling was used and the sample size

was kept as 5% of the approximate number of total apple farmers in each district, keeping

in view the time limitation. In total some 676 apple farmers were selected for interview in

the selected districts (Table 1). There are 30 cold storages in the selected districts and all

are interviewed. Further, to ensure the participation of each category of farmers, the

sample was distributed based on the size of land holding in each tehsil of the selected

districts (Table 2 & Appendix-I) based on the information obtained from Agriculture

census (2010). The information obtained through the above mentioned apple growers and

other actors survey are used for visualization purpose only.

Table 1: District wise distribution of sampled apple farmers and cold storage owners

Respondent District

Quetta

District

Killah

Abdullah

District

Pishin

District

Killa

Saifullah

District

Kalat

Total/

Category

Farmer Population 700 2914 3250 3840 2756

Sample 35 146 163 193 138 675

Cold

Storage

Population 12 14 1 0 0

Sample 12 14 1 0 0 27

Survey tools for each population category were designed using preliminary findings from

Focus Group Discussions and input from various technical and field experts. Each

questionnaire had a maximum of 12 questions to ensure not to overwhelm the

24

participants and collect maximum possible relevant data. The field survey work was done

during March-May, 2020.

Table 2: District wise distribution of sampled apple farmers based on farm size

Sample Quetta

Killah Abdullah

Pishin Killah Saifullah

Kalat Total

Large Farmer (> 25 acres) 3 12 9 36 6 66

Medium Farmer (5-25 acres) 11 79 51 65 123 329

Small Farmer (< 5 acres) 21 55 104 92 10 281

Total sample 676

Similarly, the information about the number of commission agents, wholesalers, retailers,

and cold storage owners was obtained from the secretary market committee Quetta. 110

contractors and 27 cold store owners were interviewed in different districts. While 25

commission agents/Arthi, 33 wholesalers, and 100 retailers were interviewed in Quetta

wholesale market. Only Quetta market was surveyed for the above actors interviews

because of being the only wholesale markets exist among all the selected districts. The

support of personnel from market committee was sought to access different respondents

in the Quetta wholesale market. The sample was purposively selected using snow ball

sampling technique. The data obtained through the above mentioned Apple farmers and

other middlemen survey detailed in Table 3.

2.2.6 Data analysis

The questionnaires were properly coded and numbered and then data was entered into

the Excel for analysis. The data were then cleaned for missing values or outliers, both the

qualitative and quantitative data were analyzed by using descriptive statistics tools.

Table 3: Distribution of sampled marketing middlemen Respondent

Quetta

Killa

Abdullah

Pishin Killa

Saifullah

Kalat Total

Contractor Population 100 725 425 21 550

Sample 20 30 20 20 20 110

Commission

Agent

Population 258 - - - -

Sample 25 - - - - 25

Wholesalers Population 866 - - - -

Sample 33 - - - - 100

Retailers Population 2000 - - - -

Sample 100 - - - - 33

2.2.7 Estimation of gross margins and net returns from apple

Gross margins of farm enterprises provide a simple method for comparing the

performance of different enterprises that have similar requirements for labour and

25

capital. The gross margin of an enterprise refers to the total income less the variable costs

incurred in the enterprise. Gross margin analysis of apple produced in different districts

was done. Gross margins and net returns from apple were computed in different

districts/elevations using the following formula:

Gross margin (GM) = Total Revenue (TR) – Total Variable Costs (TVC)

Further, due to variations in climatic conditions amid elevation of the surveyed areas, the

analysis of apple margins in different districts has been done based on altitude above the

sea level. These are low altitude areas (1,400-1,900 metres) and high altitude areas (1,901

metres and above). With variation in altitudes, the climatic conditions changes which

affect the apple quality because the chilling hours required for good apple growth,

temperature, cultivars choice, quality of the produce etc. also changes (Saeed, 2016).

Table 5 (page 60) demonstrates the marketing margins of apple for low- and high-altitude

areas.

2.2.8 Calculation of marketing margins and costs

The difference between the price paid by the ultimate consumer and the price received by

the producer is called marketing margin. It is also calculated by taking the percent share

received by each marketing functionary in the consumer price (Table 6, page 61). The

below given formula was used to compute percentage marketing margins earned by each

market intermediary at different stages of marketing process. Marketing margin (MM) =

(PS/SP) x 100, where PS is the price availed by different functionaries and SP is the sale

price of the same functionary.

Marketing costs are those costs incurred by different marketing functionaries at various

levels of the marketing process. These costs have greater impact on the margins of the

different market functionaries. Major items include picking, sorting, packing, loading,

unloading, transportation, cold storage etc. These costs were computed using the

following formula: Marketing costs (MC) = AS × QH, where MC is marketing cost, AS is the

amount spent per unit, and QH is the quantity handled.

The net margin is the net earnings left after paying for all marketing costs. Net marketing

margins were computed using the following formula: Net marketing margin (NM) = PS –

MC, where PS is the price spread earned by a specific market functionary and MC is the

marketing cost per unit.

2.2.9 SWOT analysis of apple value chain

The SWOT (Strengths, Weaknesses, Opportunities, and Threats) of apple value chain in

different districts is computed from different perspectives to consequently elaborate the

cost-benefit analysis of apple. It is one of the known methodologies to systematically

26

identify the external and internal factors influencing apple value chain. It also makes

combinations of S-O (strengths and opportunities) as positive factors and W-T

(weaknesses and threats) as negative factors to systematically evaluate the cost-benefit

analysis of any value chain (Arsi et al., 2017). The SWOT analysis is done separately for

Quetta, Killa Abdullah, Pishin, Killa Saifullah, Kalat districts in section 3.2.1.

2.2.10 Shortcomings and limitations of the study

The survey data are based on farmers’ recalls and estimates; as written records were

not maintained by majority of the farmers.

Due to lack of the population lists of value chain actors required for the sampling

purpose, non-probability sampling technique was used for the selection of

respondents.

Time period for survey work was short given the sparsely distributed population in

Balochistan, therefore sample size was kept restricted.

The survey was undertaken in five districts (main apple production area) of

Balochistan. The findings can be generalized to the rest of the apple producing

provincial districts having similar agro-ecological conditions.

3. Value chain analysis

3.1 Overview of the value chain in Pakistan

Description of production volume, domestic, export and import markets, possible federal

strategies and projects from the past specifically targeting the value chain are presented

in this section.

3.1.1 Production volume, export and import of apple

The average production, area, yield, import and export of apple over the period 2012-13

to 2016-17 was 595708 tones, 103305 hectares, 5.79 tones, 43024 tones and 416 tones

respectively as shown by table 4.

Table 4: Apple area, production and trade during the period 2012-13 to 2016-17

Year 2012-13 2013-14 2014-15 2015-16 2016-17 Average 2012-13 to 2016-17

Production (tones) 556,307 515,092 616,748 620,481 669,912 595,708

Area (hectare) 110,411 103,943 104,998 100,246 96,928 103,305

Yield per hectare 5.04 4.96 5.87 6.19 6.91 5.79

Import (tones) 23,917 35,359 26,276 51,447 78,122 43,024

Export (tones) 864 287 405 163 361 416

Source: Various issues of Agriculture Statistics Balochistan, Government of Pakistan (2018)

27

The data shows that there has been an increasing trend in the production and yield of

apple while a decreasing trend in area over time. The import and export related data

shows that there has been a rising trend in the later while a decreasing trend for the

former.

The province wise distribution of apple production shows that out of 669,912 tons of

apple produced in Pakistan during 2016-17, some 87 % was produced in Balochistan, 12.3

% in KPK and 0.67 % in Punjab as shown by Figure 5.

Figure 5: Apple production in Pakistan (2016-17)

0

200000

400000

600000

Punjab KPK Balochistan Total

Area (hectares) Production (tonnes)

Source: Bureau of Statistics (2017)

To boost output and export, improvement in farming practices is needed to penetrate

deeper into conventional markets and also explore new ones (Aazim, 2016). The export of

fresh fruits, increased from USD 292 million in 2011 to USD 438.5 million in 2015 and then

taking a dip to USD 427 million in 2016. In the four months of 2016, the country earned

USD 122 million through exports of fresh fruits. However, given the size of horticulture

sector in terms of production and area, the exports are not up to the potential. There are

few issues being faced by the fruits and vegetable exporters on the value chains. Aazim

(2016) shared the fruit and vegetable exporters views on the current situation of exports.

According to the exporters, a lot needs to be done in terms of setting up inland

transportation, though as compared to the past years, the value chain of fruits has slightly

improved. They further narrated that Pakistan is far behind China and India in tapping the

export opportunities, because the foreign trade missions often inform the value chain

actors about the opportunities when they are gone. Moreover, the structural issue such as

lack of cold chain facilities and high postharvest losses of fruits continues to affect the

export potential. Furthermore, private sector is also not very active in Balochistan (Aazim,

2016). Further to these issues, limited numbers of exporters are able to hold the required

licenses and certificates by complying with market requirements in terms of food safety

and quality standards and selling their products to foreign markets.

28

3.1.2 Domestic and import markets

Pakistan is the net importer of apple and during the five years from 2012-12 to 2016-17

and imported 43,024 tones with major quantities from Afghanistan, Iran and China, and

exported an average amount of 416 tones of Apple with major exports to UAE, Sri Lanka,

and Oman (Figure 6).

Figure 6: Apple exports and imports (tones) during 2017

0

100

200

300

400

500

600

Bahrain Oman Sri Lanka UnitedArab

Emirates

Source: Bureau of Statistics (2016-17)

0

10000

20000

30000

40000

50000

60000

Afghanistan Iran Other

As per the FGD (2020), conducted for this analysis, apple farmers in all the districts reported the import of large quantities of apple from Iran and Afghanistan which according to them was going on for decades. An apple farmer and member of Zamindar Association showed their concerns and mentioned that “apple imports from other countries specially Iran and Afghanistan causes depressed prices for our local apple. Irani apples are superior quality and lower price than our apple. We have shown our concerns through media and asked to ban import of apple from other countries as we have large quantities of apple produced locally. But no action has been taken so far in this regard”. The echoes have been also heard in the upper and lower houses of parliament where the lawmakers from Balochistan stressed the need to block the illegal import of fruits and vegetables from Afghanistan, Iran and India as it was affecting the local farmers especially in Balochistan (Khan, 2018). However, various ministries of the government could not agree on the actual origin of illegal imports of fruits and vegetables.

3.1.3 Federal strategies targeting value chain

The Ministry of Planning, Development and Reform revealed that Pakistan is largely left

out of global value chains, because of export of relatively low value products instead of

adding value to its primary products at home and participating in the increasingly

connected world economy (MDPR, 2018). However, it must be also mentioned that local

products are very often not complying with the SPS and TBT requirements, which are

related to obsolete compliance practices from the food industry, puzzled food control

functions and lack of food safety related public and private services to the industry. The

29

following sections present some of the federal government strategies on the development

of value chains in Pakistan:

3.1.3.1 Changed role of federal government on agriculture and rural development after

18th amendment

The role of federal and provincial governments has changed after the adoption of 18th

amendment in the constitution of Pakistan in which the provinces have been given the

responsibility for looking into agriculture and rural development. This shift of

responsibility also reflects the need to address the key challenges such as food insecurity,

technology gaps, and poor nutritional levels. Afterwards, the institutional setup for

agriculture and food security has undergone significant changes. The ministry of Food,

Agriculture and Livestock was replaced by the Ministry of National Food Security and

Research (MNFSR) in 2011. After the 18th amendment, the role and responsibilities of the

provincial governments have changed. For the development of agriculture and livestock

sectors, they are liable to increase resources considerably to be able to implement

activities under the provincial Annual Development Plans. However, the federal

Government needs to lead in consultation with the provinces on the activities of national

significance such as national priority setting, trade policies, national and trans-boundary

pest and disease surveillance, the certification of agriculture products at international

standards, and strategic and basic research (MNFSR, 2018).

3.1.3.2 Incentivizing horticulture industry

As per the 2030 vision of the Ministry of Planning, Development and Research (MPDR),

the horticulture related processing industry will be incentivized to harness the export

potential of quality processed food. There is great potential for exports of Pakistan fruits

internationally due to their richness in flavor, bulk production and varietal diversity

(MPDR, 2018). These fruits include mangos, citrus, grapes, dates, apples, peaches,

cherries, plums, pears, guava and loquat. MPDR, MNFSR and MoC of the federal

government in consultation with provincial governments to devise a strategy in this

regard.

3.1.3.3 Strategic trade policy framework (STPF)

This policy of the Ministry of Commerce’s Strategic Trade Policy Framework (STPF)

included support on new plant and machinery imports for Agro Processing. Agricultural

produce can get higher values if exported in processed form. But, due to lack of the

necessary processing facilities, a large quantity of the produce is wasted which restricts

the farmers’ incomes. Following measures will be undertaken under the STPF in the

selected agriculture sectors in order to reduce the wastage of produce and increase the

incomes of the farmers. These included some 50 % support on the cost of imported new

plant and machinery for specified under-developed regions (Rural Sindh, KPK, FATA,

30

Balochistan, Southern Punjab and Gilgit Baltistan) and 100% mark-up support on the cost

of imported new plant and machinery on all Pakistan basis (MoC, 2016).

3.1.3.4 Short-term export enhancement measures for the horticulture products

According to the Ministry of Commerce due to the high quality of some Pakistani

horticulture products, a place is being created in the international markets. The Middle

East and South East Asia are the most feasible markets for horticulture products keeping

in view the short shelf life and manageable delivery time. The targeted products in

horticulture sector will be kinnow, mango, potato, onion and fresh vegetables. To boost

their exports, the short term strategy will be the institutional strengthening of Pakistan

Horticulture Development and Export Company (PHDEC) under the MoC, supporting the

acquisition of international certifications, improved and modern packaging, development

of common facility or processing and treatment centers and market linkages development

with the passages of international chain stores in Pakistan (MoC, 2016).

3.1.3.5 Cluster based development approach to enhance value chains

The 2030 vision of the MPDR aims to promote the competitiveness of value chains,

strategies such as development of supply chains, market intelligence, incubation centres,

foreign direct investment magnetism, management training, joint research and

development projects, and the approaches of marketing of the region and setting

technical standards. For the purpose of the economic development, cluster based

approach will be used for improving the competitiveness of chosen business sectors. The

clusters will be prearranged as organizations between private sector firms, the

government, and research institutions (MDPR, 2013).

3.1.3.6 Value chain support

The National Food Security Policy of MNFSR (2018) describes that value chains in Pakistan

are characterized by poor standard agricultural markets which are lacking basic hygiene

and traceability. Moreover, inconsistent grading practices and inefficient transportation

services are common. The other key issues of value chains are lack of market information,

lack of cold storages, inadequate and poor roads, high post-harvest losses of fruits and

vegetables, traditional and poor packaging materials, lack of accessibility of smallholder

farmers to the high end markets and lack of value addition in agro based products.

Moreover, among others, marketing middlemen is exploiting the small farmers because of

their high dependency upon middlemen to sell their produce. On the other hand, the poor

consumers also suffer in terms of paying higher prices, which have negative effects on

household food security.

Keeping in view the above situation of the agricultural value chain, the MNFSR will

facilitate provinces in improving market intelligence and Information and

Telecommunication Technology (ICT) for informed decision making, regulation of markets

for better transparency and access, providing policy support for enhancing modern cold

31

storage facilities, improved post-harvest handling practices to reduce post-harvest losses

and improved quality for exports, developing standard grading, processing and packaging

entrepreneurship etc. (MNSR, 2018).

3.1.3.7 Food Losses and Wastage

According to the National Food Security Policy (2018) of the MNFSR, food losses are

estimated at 1/3rd of the food produced. The cost of annual harvest and post-harvest

losses is estimated around Rs. 228.8 billion for grains, fruits and vegetables only. The

losses happens at harvest, threshing, storage and transportation stages. According to

estimates the available storage facilities are three time less than the requirements. Food

losses happen at various stages of value chain i.e. production, marketing and processing.

The main causes of food losses reported in the literature are imbalanced use of crop

inputs, defective irrigation systems, pests and diseases damages, unsuitable and outdated

crop harvesting practices, gluts or excessive supplies in the markets, poor grading and

packaging, poor handling during transportation and poor storage etc. To improve the

situation and reduce food losses and wastage, public sector can contribute in research and

development; whereas private sector’s role will be capacity building in harvest and post-

harvest techniques (MNFSR, 2018).

3.1.3.8 Food safety and environment

The National Food Security Policy (2018) of the MNFSR adds that due to the absurd use of

agrochemicals (fertilizers and pesticides) production systems of food and the environment

are being polluted. In some places, sewage water is used to irrigate vegetables and

fodders. To improve the situation, appropriate policy measures have to be taken and

technologies have to be adopted. Balochistan Food Authority (BFA) has taken steps and

destroyed vegetables and crops grown on toxic sewerage water in Quetta and discarded

thousands of tonnes of such vegetables and crops. BFA has warned a strict legal action

against the violators under section 273 of Pakistan Penal Code and Pure Food Ordinance

1960, supplying food or drinks that is poisonous and unfit for human consumption is a

punishable offence (Balochistan Express, 2019). Moreover, reduction in the use of agro

chemicals is recommended and the use of bio-fertilizers and bio-pesticides may be

encouraged. Encourage the use of farm-yard manure for the organic production of fruits,

vegetables and nurseries It is also recommended that with the collaboration of the local

governments, towns and city administrations, the use of bio-remediation for treating

sewerage and industrial waste water for safe food production may be promoted.

Moreover, according to MNFSR (2018), the enhancement of the institutional capacity of

the concerned institutions to regulate and monitor the food safety and promoting

scientific evidence-based preventive approach in food safety instead of corrective

approach in food supply chains is also recommended (MNFSR, 2018).

32

Pakistan Standards and Quality Control Authority (PSQCA) is responsible for product

certification and to foster and promote standards and conformity assessment in order to

advance the national economy, promote the development and efficiency of the industries,

ensure the health and safety of the masses, and protect the consumers. Specifically,

PSQCA looks after the certification of mandatory articles products and process under

Certification Marks Scheme of PSQCA Pakistan Standards, and stop manufacturing,

storage and sale of those products which do not confirm these standards. PSQCA is also

responsible for the inspection and testing of products for their quality specification and

characteristics for manufacturing and import & export purpose, the registration of

inspection agencies and facilitate the trade through National Enquiry Point (NEP) to

minimize or remove Technical Barriers to Trade (WTO).3

3.1.3.9 Boosting exports

The Planning Commission, document titled “Agricultural Marketing Infrastructure and

Post-Harvest Management for the 10th Five Year People’s Plan, 2010-15” highlighted that

in the absence of a single ministry, Pakistan Horticulture Development & Export Board

(PHDEB) was set up to meet the challenges arising due to impact of globalization and

WTO. PHDEB, later on was renamed as Pakistan Horticulture Development and Export

Company (PHDEC) was established by the federal government under Ministry of

Commerce to solve domestic and export marketing issues of horticulture in Pakistan. To

boost the export of various fruits such as Kinnow, Mango, Dates, Apples and other fruits

and important vegetables, the Board has been playing pivotal role in approaching the

developed countries markets (Planning commission, 2009).

The China Pakistan Economic Corridor (CPEC) concentrates on infrastructure and energy

sectors. Balochistan has been lagging behind in terms of development in the areas of

connectivity, energy access and industrial development. CPEC could play an active role in

the socio-economic development of the province, as the Western Route passes through

the most poor regions of Pakistan and Balochistan. CPEC can generate significant results if

it connects the most deprived districts and regions to markets and social services.

CPEC is creating a new window of opportunity whereby Pakistan can explore new markets for raw apple and in value added form in different types of products such as juices, jam, jelly etc in the world. Under CPEC developments, the export of fruits is likely to increase from Balochistan due to the improvement of the road infrastructure, energy supply and the establishment of economic zones. Exporters foresee (FGD, 2020) that new export markets for Pakistani fruits in China and in the Far Eastern countries.

In the above context, there is need from both the federal and provincial governments to

prioritize enhancing the output of fruit production, marketing and managing their quality

for exports. Moreover, there is not sufficiently done to manage the fruits orchards

3 psqca.com.pk

33

management. Although some efforts are underway in Balochistan for setting up apple and

dates farming practices, grading and packaging facilities. But more efforts are needed to

be taken to setting up inland transportation, plant nurseries, government support in

marketing through improving the trade missions to tap export opportunities, provision of

cold chain facilities to reduce high post-harvest losses in fruits to increase export potential

to be able to reap the fruits from CPEC.

3.1.4 Projects from the past specifically targeting value chain

Description of the past projects targeting value chain improvement in Pakistan is given

below:

3.1.4.1 Fruit and Vegetable Development Project (FVDP)

Australian Centre for International Agricultural Research (ACIAR) funded project (2005-

2013) was initiated in collaboration with the Government of Pakistan. In order to ensure

sustainable supply in the markets, the project tried to increase the production of quality

vegetables and fruits. The main beneficiaries were the fruit and vegetable cultivators.

Field schools were arranged for farmers to educate them to ensure value addition along

chain, reduce the existing high post-harvest losses, adopt Integrated Pest Management

(IPM), and enhance the development of market linkages between producers and

processors.

3.1.4.2 The Agribusiness Project (TAP)

The Agribusiness Project (2011-2015) was initiated on horticulture and livestock value

chains.4 Project aimed to strengthen local capacity of stakeholders within important value

chains to increase sales both locally and internationally. The project worked on the

technical assistance and capacity building training to fruits and livestock farmers,

associations, and agribusiness enterprises, presented customized cost-sharing grant

products, delivered international support for agricultural marketing and brand

development to identify and capitalize on high-price market opportunities and develop

market linkage and established platforms to promote the development of explicit

subsectors and create connections between the value chains stakeholders.

3.1.4.3 Australia Balochistan Agri-business Programme-Phase Two (AusABBA II))

The six years (2018-2023) Australian government (DFAT) funded (USD 16.9 million)

programmes implemented by FAO in Balochistan is a partnership between the provincial

government, the Australian Government and FAO. The objective is to help households

engaged in agriculture. The project aims to adopt sustainable, profitable and diversified

strategies in an enabling environment that increases farmers’ incomes, improve food

security and nutritional status. The project includes training to male and female farmers to

4 www.cnfa.org

34

strengthen supply chains and eventually connect farmers with markets for Balochistani

commodities such as onions, fruit trees, goat and sheep meat, seed, wool and dates.

3.1.4.4 Reform Value Chain Approach and Horticultural Farmers

The USAID funded Project titled “Food Security and Poverty Alleviation in Arid Agriculture

Balochistan between 2004 and 2008, was initiated by FAO in three districts of Balochistan

namely Killa Saifullah, Loralai and Mastung. The “Balochistan Agriculture Project”,

emphasized on capacity building of farmers, and value chain development. The project

had great impact on production and income as show by Iqbal (2016).

3.1.4.5 Balochistan Agriculture Project

USAID and FAO implemented a $ 32 million, USAID funded Balochistan Agriculture Project.

The project worked on agricultural development activities in eight districts of Balochistan

and FATA. The Project aimed to increase the production, sales, and revenues for crops and

livestock in order to help individual farmers and communities. New technologies, varieties

and livestock breeds and improved practices were introduced. Community organizations

were trained to introduce the new approaches. The project provided technical assistance

to the communities to make them able to increase their product value through better

grading, packaging, and marketing. It also included improving buyers and suppliers’

relationships through establishing better connectivity. The project also worked on the

development of policies and regulatory frameworks for market-led and community driven

investments for increasing women participation in income earning activities.

3.1.4.6 Government of Balochistan project for the establishment of apple grading and

packaging facilities

To establish one apple grading and packaging facilities each in Ziarat and Mastung

districts, in 2015, the government of Balochistan launched a project worth PKR 50 million

to help apple growers export their produce and to help improve their economic condition.

Ziarat and Mastung districts are well known for the production of high quality apple.

These grading and packaging facilities were under the administrative responsibility of the

Directorate of Economics and Marketing. The Director Economics and Marketing

informed that unfortunately these two facilities were non-functional due to lack of

interest from the farmers side in terms of their use. Despite of the fact thatthe facility was

advertised in the newspapers, but farmers did not show interest. According to him, such

facilities could be successful only if established on the public-private partnership basis not

solely under the government departments' administrative control as has been in this case.

3.1.4.7 Pakistan agriculture and cold chain development project (PACCD)

PACCD was a three-year project sponsored by the U.S. Department of Agriculture that

links horticultural and fishery production in Balochistan to modern markets in Karachi,

35

Hyderabad, Lahore, Islamabad, and abroad. PACCD established some 9,400 tons of cold

storage capacity to store the produce and increase its shelf life and marketability. The

project constructed cold stores were in the range of 25 to 1,500 tons of capacity and

provided the refrigerated transportation to complete the cold chain in the region.

3.1.4.8 Agricultural Policy Reforms- Firms Project

The tasks to be carried out by the project were as follows: i. Review the agricultural

markets of Balochistan and evaluate their performance; ii. Review Balochistan's

agricultural marketing policies, laws and regulations and identify and detail the

deficiencies and distortions in the provincial policies, laws, and regulations; iii. Estimate

the economic impact of such deficiencies/distortions; iv. Draft an international best

practice agricultural markets policy including recommended regulatory framework,

business processes and institutional set-ups consistent with fair, efficient, growth-oriented

agricultural markets; v. Identify the capacity building needs of the provincial agriculture

department and other relevant institutions in light of the policy and legal reform agenda

proposed and vi. Identify down-stream FIRMS Project actions that will strengthen/support

the agricultural markets system of the Province.

3.1.4.9 Livelihoods Restoration in FATA (Phase II)

The three years project was from April 2018 to March 2021 with the financial assistance of

the Government of Japan (USD 4.9 million) through the Japan International Cooperation

Agency (JICA) and implemented by FAO. The project focuses on improving agricultural

productivity by adopting innovative practices for farming, value addition in agriculture

through the establishment of value chains and the introduction of the functional markets

technologies.

3.1.4.10 The Horticultural Advancement Activity (THAzA)

THAzA is a five years (July 2018 to June 203) project funded by USAID amounting to USD

16.2 million. The project implementing partners are FAO, Livestock and Dairy

Development Department, Agriculture and the Planning and Development Department.

The project aims to enhance income opportunities from both agriculture and other

sources that will lead to sustainable growth of national economy. It specially focuses on

fruits value chains because of its nature as agribusiness project. The project will work in

the selected districts of upland Balochistan located along the Pakistan-Afghanistan

border. THAzA project addresses the post-harvest losses, small amount of value addition,

and low quality standards adoption. The project also works to enhance the capacity of

agricultural extension and building the skills of the fruit and vegetable value chain actors.

3.1.4.11 Agriculture Rural Development and Poverty Reduction Program

A fruit preservation unit was launched under UNIDO’s Agriculture Rural Development

36

and Poverty Reduction Program in Kuchlak Balochistan for disabled individuals. The

Balochistan Rural Support Organization(BRSP) formed apple production, marketing

associations and village organizations in district Killa Saifullah and worked towards

development in sectors of agriculture, horticulture and livestock. All these initiatives

should be able to catalyze the implementation of much targeted intervention to

introduce local value adding practices and ensure appropriate capacities among value

chain actors.

3.2 Overview of the value chain in the province

In terms of area, Balochistan constitutes the largest share in area i.e. around 44 percent,

but in terms of population it constitutes only 6 % of the total population (i.e. 12.34

million). It is comparatively less developed because of its sparsely distributed population.

As well, the provincial economy's percentage share in national economy dropped from 3.8

percent in 2000 to 2.9 percent in 2015, and the province's per capita income was

estimated at nearly half the national average (Pasha, 2015). Similarly, the

Multidimensional Poverty Index (MPI) was 0.394, the incidence of poverty was 71.2

percent. As a result, the province witnessed the slowest poverty reduction of 12.2 percent

while the national figures showed a comparatively greater poverty reduction of 16.4

percent from 2005 to 2015 (Planning Commission of Pakistan, 2015).

Agriculture is the main livelihood of Balochistan's population (Pasha, 2015). Within

agriculture; horticultural crops, small ruminants and fisheries are the principal sources of

livelihoods in the province's rural areas. Horticultural crops make an important

contribution to the agricultural sector, especially the fruit and vegetable sector is the most

profitable enterprise. It offers sufficient job opportunities and potential for increasing

farming community incomes. Balochistan is blessed by having a wide variety of climatic

and agro-ecological zones, is thus ideal for raising various fruits and vegetables.

Horticultural crops such as apples, dates, apricot, grapes, tomato, and vegetables

accounted for some 45 percent of the value added to agriculture in the province and some

12 percent of the country's share during 2015 (Bureau of Statistics, 2015).

Table 5: Value of agriculture produce in the province during 2017-18 (PKR Million)

Crops 96,314

Fruits (excluding apple) 56,439

Apple 43,282

Vegetables 17,655

Total value 213,690

Source: Agriculture Statistics Balochistan (2017-18)

37

Horticulture segment is likely to drive agricultural growth in the years to come, given the

increasing share of high-value commodities in the total value of agricultural production

and their growth potential (Appendix-C). Through raising rural people's wages, the role of

the sector is quite significant in the economy of the area. Within horticulture produce,

fruits contribute important share in the provincial economy and are the significant cash

crops of rural livelihoods because of their labour intensive nature. Overall crop area of the

province was reported as 1056,355 hectares in 2017-18, with 203, 207 hectares of fruit

(Balochistan Agriculture Statistics, 2017-18). The Balochistan upland areas which include

all the selected districts under this project are suitable for cultivating temperate fruits of

good quality.

3.2.1 Characteristics of selected districts on the basis of climate, size of population,

approximate number and types of farmers

3.2.1.1 District Quetta

Quetta is capital city of the province. It is the biggest city in terms of population. The city is

situated at 1696 meter above sea level and is influenced by the local steppe climate. There

is little rainfall all year round at Quetta. In Quetta the annual average temperature is 15.8

° C 60.5 ° F. Annual rainfall is 244 mm or 9.6 inches and is one of the high-altitude cities of

Pakistan. Population-wise, it is considered as the 6th largest city in Pakistan having 2.27

million population (Bareau of Statistics, Population Census, 2017). According to

Agriculture Extension Department, approximately 700 apple producers lie in apple

production pockets of the Quetta district. Most of these farmers lies in Hana Urak,

Kuchlack, Sra Ghurgai, Chashma Achowzai, Mian Ghundi, and Akhterabad. Hana Urak has

the competitive advantage in Apple production over other areas of the district due to its

cool climate and higher elevation.

3.2.1.1.1 SWOT Analysis for Apple production in District Quetta

Strengths:

Apple occupies a good amount of the cultivated area in Quetta.

Henna areas provide the most suited winter and summer temperatures for quality

apple production.

Apple trees blossom late enough to avoid early spring rains.

Drier weather during summer provide less favorable environment for disease attack.

Apple possesses an advantage over other fruits grown in the district because of longer

storage and shelf life.

Decades long production, management and marketing experience of the individuals

connected with apple production and post-harvest management and marketing.

Higher employment opportunities in the city help apple farmers to establish, support

and sustain production, even under unfavorable conditions.

38

A higher number of contractors available.

Weaknesses:

Poor production, post-harvest and marketing practices used

Untrained picking labour cause fruit bruises

Lack of certified crop inputs

Higher water requirement of apple compared to other fruits and vegetables.

Apple stress sensitive and can hardly recover in events of water stress.

Many years needed from orchard establishment till economical returns start due to the

cultivation of late fruiting verities.

Higher preharvest and post-harvest losses

Comparatively lower quality fruit produced in the low land areas such as Kuchlak,

Almas and Mianghundi areas, due to irrigation shortages and hot summers.

Risk and uncertainty on account of price and weather

Lack of real time weather and price information needed by farmers for on time better

decision making.

High agricultural inputs and capital costs required.

Absence of post-harvest apple processing units.

Low level of mechanization.

Poor irrigation management.

Financial weakness of farmers, hence often a deficit of vital inputs availability on time.

Opportunities:

Possibility of strengthening direct linkage and access of farmers to retailers,

supermarkets and processing units.

Production per unit area still resides at a very low level, hence there exists a potential

for an enormous increase in profitability.

A huge demand of apple in national markets.

Opportunities for high density orchards with dwarf and semi-dwarf sized apple plants.

Business opportunities for cold stores and refrigerated transport.

Opportunities for post-harvest value addition business in Quetta city

Threats:

Urbanization is changing cultivated lands into residential and commercial blocks

Water scarcity and increasing competition for water amongst residential, industrial and

agricultural users

Fragmentation of land holdings making agricultural production non feasible

Losses of fruits due to dry weather and winds during the ripening season.

Increased temperatures due to climate change and massive urbanization

39

Increased competition from apple imported from neighboring countries

Increasing pest infestation as a result climate change

The increasing cost of production.

Shifting interest of farmers towards seasonal vegetable farming

Lack of real time price information

Increased tourist and picnic activities in apple orchards are turning production units

into recreational gardens.

3.2.1.2 District Killa Abdullah

Killa Abdullah lies between east longitudes 66 ° 14'23"-67 ° 15'43 "and north latitudes 30 °

05'7"-31 ° 18'46". The district is situated in Balochistan's northeast sharing its northern

and western boundaries with Afghanistan, while district Pishin is to the East and Quetta to

the South. District headquarter is the town of Chaman and has an area of 3,293 square

kilometers. According to the Pakistan Bureau of Statistics (Population Census, 2017), total

population of the district is 757,578 compared to 360,724 in 1998; where 52.48 per cent

were male and 47.52 per cent were female in 2017.

The climate of the district is usually dry and temperate. Owing to different elevations, the

district has very deviating temperatures. Summer is pleasant, while winters are cold. The

district lies beyond the monsoon currents domain, hence the rainfall is erratic and scanty

(AASA & GRHO, 2015). The Toba plateau covers its northern portion that is composed of

long central ridges and many spurs. These spurs range in height between 1,500 and 3,300

meters. The district's climatic conditions are particularly conducive to horticulture

farming. Apple, grapes, apricots, peaches, plums, potatoes, onions, tomatoes, wheat,

barley and cumin are the major crops in the district. Tehsil Killa Abdullah, Gulistan and

Dobandi are famous for apple production.

3.1.2.1.2.1 SWOT Analysis for Apple production in District Killa Abdullah

Strengths:

Apple is the largest grown fruit in Killah Abdullah.

Cold winters provide enough chilling hours for most of the apple cultivars in districts

high land areas.

Drier weather, hence lesser attack of bacterial and fungal diseases.

Decades long production, management and marketing experience of the individuals

related with apple industry.

Comparatively less perishable and longer storage and shelf life than other fruits

produced in the district.

Large land holdings and a higher number of apple trees per farmer

Collective business and farm management by male members of the family.

Source of employment for a significant proportion of the population.

40

Weaknesses:

Usage of old production practices and late fruiting cultivars

Comparatively water exhaustive crop

Sensitive and less stress resilience

Higher fruit fall due to dry weather during summer.

Pre and Post-harvest losses due to improper pre and post-harvest crop management.

Comparatively lower quality fruit in low land áreas

Lack of real time price information needed for on time decision making

Low level of mechanization specify in production and marketing.

Poor irrigation practices and methods used

Financial weakness of farmers, hence often deficit of vital input on time.

Unnecessary and in most cases harmful dependence of farmers on pre-harvest

contractors and commission agents.

High agricultural inputs and capital costs required.

Absence of post-harvest apple processing (grading, packaging etc)

Lack of on farm storage facilities

Fruit dropping due to warm weather causes high preharvest losses

Poor transportation causes breakage of crates and causes post harvest losses

Opportunities:

Huge gap between current and potential yields

There exists a good demand of apple in domestic markets

There is enough possibility of cultivating suitable high density low delta apple cultivars.

Business opportunities for cold stores, refrigerated transport, and post-harvest value

addition businesses.

Vast areas available suitable for apple cultivation i.e., mountainous Deobandi tehsil.

Threats:

Climate change in the form of droughts, rising temperature and increasing water

scarcity.

Increased competition from apple imports from neighboring countries.

Inadequate, inappropriate and expensive transportation

Intimidating impact of climate change on growth and quality of apple.

Pest infestation as a result of continuously accumulating airborne dust on plant leaves

and fruits.

Shifted interest of farmers towards grapes, seasonal cereals crops and vegetables.

Low quality and adulterated crops inputs

Lack of certified nurseries to get true to type apple saplings

41

3.2.1.3 District Pishin

Pishin district lies between north latitudes of 30 ° 04' to 31 ° 17' and east longitudes of 66 °

13' to 67 ° 50'. The district is bounded to the northeast by Afghanistan, the east by Killa

Saifullah, the south by Quetta and Ziarat and the west by Killa Abdullah. Its north-south

breadth is nearly 68 km and its east-west width varies from 8 to 38 km. The district's total

geographic area is 7,874 Km2 and according to Population Census (2017) some 736, 481

people live in the district. The district's general characteristic is mountainous and northern

portion is covered by Toba Plateau. The mountains are relatively flat, with long central

ridges falling down regular spurs from which frequent spurs descend and these spurs

range from around 1,500 to 3,300 meters in height (District development profile, 2011).

The Pishin district sits at 1545 meter above sea level and the average annual temperature

in Pishin is 16.7 °C or 62.1 °F. Annual precipitation is 256 mm or 10.1 inches. Winter and

spring months such as December, January, February, March and April are rainy. The

district is beyond the current monsoon range. Climate of Pishin can be described as hot

and dry summers, and bitterly cold winters (Climate Data Organization). Twenty percent

of the overall geographical area is cultivable land; of which, some 16 percent was net

sown during 2017-18 (Agriculture statistics, 2017-18). The hilly areas such as Toba,

Barshore, Karezat, and surroundings by Kratu Pass produce comparatively high quality

apple than other parts of the district due to cool temperature. While, Malikyar, followed

by Shekhalzai, Khanzai, Alizai, Huramzai, Torasha, Bostan, Malezai etc are also main apple

producing areas in the district (FGD Survey, 2020).

3.2.1.3.1 SWOT Analysis for Apple production in District Pishin

Strengths:

Apple is the second largest agricultural produce of the district Pishin Higher returns compared to other fruits grown in the highlands of district Lesser sensitivity to diseases caused by monsoon rains Cold winters provide enough chilling hours in many areas of the district including

Karezat, Bostan and Toba. Toba areas located at high altitudes provide most suited winter and summer

temperatures for quality apple production. Drier weather during summer provide less favorable environment for disease attack. Decades long production, management and marketing experience of the individuals

connected with apple production and post-harvest management and marketing. Higher rate of education, employment and businesses in urban areas help apple

farmers to establish, support and sustain production even under unfavorable conditions.

Collective business and farm management by male members in the family; helps to spare family members for better management of orchards.

42

Apple farming provide good source of earning to a good proportion of district residents.

Weaknesses:

Outdated production, post-harvest handling and marketing methods. Higher water requirement of apple when compared to other fruits and vegetables. Sensitivity to the events of water stress. Long maturity time needed for Apple as compared to other fruits Higher pre harvest and post-harvest losses. Comparatively lower quality fruit produced at low land áreas when compared to high

land mountainous areas of Toba. Lower financial returns due to lower market value of the apple produced in low

altitude areas of district Poor irrigation management Lack of weather and market related information for better decision making. Absence of post-harvest apple processing facilities Financial weakness of farmers, hence often deficit of vital inputs at the time of need Unnecessary and in most cases harmful dependence of some farmers on pre-harvest

contractors and commission agents.

Opportunities:

Higher rate of education and awareness provide opportunities for adoption of efficient orchard and irrigation management.

Opportunities for high density apple orchard establishment and management. Enormous potential for increased productivity and increased profitability Increasing demand of apple in national markets. Possibility of cultivation of more suitable apple cultivars in areas with significantly

varying weather conditions and soil types. Business opportunities for cold stores, refrigerated transport and Apple processing/

value addition business

Threats:

Increasing water scarcity and increasing competition amongst residential, and agricultural users for water.

Power shortages resulting in higher cost of inputs specially irrigation water. Shifting interest of apple growers towards tunnel farming, vegetable and grape

production in low land áreas Increased competition in the local markets due to the import of Apple from the

neighbouring contries Inappropriate and expensive transportation facilities during harvesting season. Pest infestation as a result of continuously accumulating air born dust on leaves and

fruits. Lack of market related information and certainty with respect to sale price.

43

3.2.1.4 District Killa Saifullah

Area-wise district Killa Saifullah ranks 15th in Balochistan (smallest to largest) and has an

area of 6,831 square kilometres, 22.50 percent of which is cultivated (Balochistan

Agricultural Statistics, 2017-18). The district lies between 67° 17' 37" to 69° 22' 54"East

longitude and 30° 30'35" to 31 ° 37'10" North latitudes usually high at 1500 meter to more

than 2500 meter above sea level. This district is surrounded by Afghanistan on the

northwest, Zhob on the north and east, Pishin on the west and Loralai on the south.

According to Population Census (2107), the district's total population was 342,814,

compared to 193,553 in 1998.

The climate of the district is semi-arid (steppe) dry and classified. It can be set in

temperature area of "hot summer and cold winter." The summer is dry, with mean

temperatures between 21 °C and 32 °C. June is the hottest month when peak high

temperatures reach 32 °C but do not climb above 38 °C, but the mean temperature stays

below 32 °C, even in the hottest month. While, the annual mean temperature is 17.3 ° C

63.1 ° F. The rainfall is around 210 mm / 8.3 inches per annum (Sarfraz, 1997; Climate Data

Organization).

3.2.1.4.1 SWOT Analysis for Apple production in District Killah Saifullah

Strengths:

Apple grown on a large area of district Killah Saifullah.

The profits from apple production are significantly higher than the other crops

grown in the district.

Better infrastructure and roads to facilitate farming.

Kan Mehtarzai, Kanchooghi and Murgha Faqirzai areas have advantage over other

apple producing areas in producing high quality apples for being located at high

elevation.

Cold winters and mild summers in areas of higher altitude provide enough chilling

hours and suitable temperatures for best quality apple production.

Well drained soils of the district are most suitable for apple cultivation.

Comparatively higher rains during monsoon season result in higher air humidity

hence better fruit color and decreased fruit loss.

Large land holdings in Killah Saifullah tehsil and Nasai areas, hence higher number

of apple trees per farmer

Availability of skilled and comparatively cheap labor force.

Collective business and farm management by male members in the family; helps to

better manage orchards.

Apple farming provide direct and indirect source of earning to a significant

proportion of district residents.

44

Weaknesses:

Poor production practices, post-harvest handling and marketing methods.

Apple’s higher water requirement when compared to other fruits and vegetables.

Apple a stress sensitive crop, can hardly recover from the event of water stress.

High post-harvest fruit losses due to improper post-harvest management.

Financial weakness of farmers, hence often deficit of vital inputs availability on

time.

Decreasing interest of farmers in apple production after introduction of olive in the

vast areas of the district

Comparatively greater number of years needed for orchard maturity compared to

other fruits that start fruit bearing earlier.

Comparatively lower quality fruit produced in low land areas of district such as

Nasai and Killah Saifullah tehsil.

Lower financial returns due to higher production and marketing costs

Poor irrigation management and low level of mechanization.

Absence of vital information related to weather and market prices needed by

farmers for better decision making.

Absence of post-harvest apple processing units and cold storage facilities.

Unnecessary and in most cases harmful dependence of farmers on pre-harvest

contractors

Opportunities:

Longer shelf life and desirable fruit quality of the apple produced in high altitude

areas of Kanchooghi and Murgha area have the potential of export to international

markets.

Better connectivity of Apple producing areas with nationwide markets through

highways.

Opportunities for high density apple orchard establishment and management.

Production per unit area still resides at very low level; hence there exists enormous

potential of increased productivity and profitability.

Continuously increasing demand of apple in local markets nationwide.

Possibility of cultivating more suitable apple cultivars in areas with lower chilling

hours and hot summers.

Business opportunities for cold stores and refrigerated transport.

Opportunities for post-harvest value addition business.

Vast areas available for apple production in mountainous areas of Muslim Bagh

and Loi-band tehsil.

45

Threats:

Water scarcity, dry spells and continuously depleting ground water.

Power shortages resulting in shortages of irrigation at critical stages

Shifting interest of apple growers towards towards other crops.

Increased competition generated by the import of apple from neighboring

countries.

Intimidating impact of climate change on growth and quality of apple.

Increased costs on account of inputs.

Lack of market related information and certainty with respect to sale price.

3.2.1.5 District Kalat

Kalat is located in the middle of Balochistan, shares western borders with district Washuk,

Kharan and Nushki, north with district Mastung, east with district Bolan and south with

district Khuzdar. According to the 2017 census, the district's total population was 412,232

as compared to 237,834 in 1998. The district consists of high valleys and hills. District land

height ranges from 2623 to 2658 meters above sea level. Kalat district occupies 1.91 per

cent of the Balochistan province's geographical area (6621.86 Km2). The total potential

area for cultivation was reported as 114,818 hectares, which is more than 17 percent of

the total geographical of the district. Out of which, approximately 14 percent i.e. 15,885

hectares were brought under crop. Irrigation is often achieved by tube wells (99%), and

only few by Karezes (1%).

Kalat lies at 2007 meter above sea level and is known to have a desert atmosphere. The

average temperature is 14.1 °C or 57.4 °F. The rainfall here is around 163 mm or 6.4

inches per annum. During June the least amount of rainfall occurs, which is recorded on

average 1 mm. Most of the precipitation here comes in January, an average of 36 mm or

1.4 inch (Climate Data Organization).

3.2.1.5.1 SWOT Analysis for Apple production in District Kalat

Strengths:

Apple is more than any other fruit in terms of area and production in Kalat.

The profits from apple production are significantly higher than the other crops

grown in the district.

Better roads to facilitate farming and connectivity to the rest of the country.

Cold winters and mild summers in areas of higher altitude provide enough chilling

hours and suitable temperatures for best quality apple production.

Apple possesses advantage over other fruits grown in the district because of late

blossom and comparatively longer shelf life.

46

The areas of union council Johan, Skelko, Pandran and Nechari highly suitable for

apple production

Collective business and farm management by male members in the family; helps to

better manage orchards.

Apple farming provide direct and indirect source of earning to a significant

proportion of district residents.

Weaknesses:

Outdated production, post-harvest handling and marketing methods followed.

Apple’s higher water requirement when compared to other fruits and vegetables.

Apple a stress sensitive crop, can hardly recover from the event of water stress.

Occasional orchard loss due to drought spells and decreased level of ground water.

Financial weakness of farmers, hence often deficit of vital inputs availability on

time.

Apple trees need comparatively larger number of years to mature than other

fruits.

Poor irrigation management and low level of mechanization.

Absence of vital information related to weather and market prices

High post-harvest fruit losses due to improper post-harvest management.

Absence of cold stores and post-harvest apple processing units.

Unnecessary and in most cases harmful dependence of farmers on pre-harvest

contractors

Electricity loadshedding and fluctuation

Opportunities:

Longer shelf life and desirable fruit quality of the apple produced in high altitude

areas of Pandran, Johan, Skelko and Nechari areas have the potential of export to

international markets.

Better connectivity of Apple producing areas with nationwide markets through

highways.

Opportunities and need for high density apple orchard establishment

Enormous potential of increased productivity and profitability.

Due to good quality, continuously increasing demand of apple in domestic markets

nationwide.

Possibility of cultivating more suitable apple cultivars in areas with low water

requirement

Business opportunities for cold stores, refrigerated transport and apple processing.

Vast areas available for apple production in mountainous areas of the district

47

Threats:

Water scarcity, dry spells and continuously depleting ground water.

Power shortages resulting in shortages of irrigation at crop’s critical stages

Increased competition generated by the import of apple from neighboring

countries.

Intimidating impact of climate change on growth and quality of apple.

Rising costs of production and marketing squeezing profits.

Lack of real time price informaiton

3.2.2 Level of and product types in primary production in the province

Horticultural farmers in Pakistan suffer from the scarcity of high-quality planting stocks

planted worldwide under agro-climatic conditions close to our climate, placing them at a

considerable comparative disadvantage compared to others. The cultivars planted here

are typically old cultivars in the public domain that catch the lowest world market values

and earn just a small fraction of the new cultivars’ profit margin (World Bank, 2009).

Most of Pakistan's commercially grown apple cultivars/varieties need cooler atmosphere

as compare to the other crops. Apple flourishes well and bear good fruits in a cold season

which is usually available at high altitudes. Hence, proper variety collection is of utmost

importance. Varieties grown in Balochistan with success are Red Delicious, Golden

Delicious, Amree, Sky spur, Kashmiri, Banki, Kulu etc. While varieties with low chilling

requirement such as Summer Gold, Anna, Golden Dorset have been successfully tested

and providing promising results in the low altitude areas.

3.2.3 Types of primary products in the selected districts

Fruits, vegetables, cereals, onion, potato, melons, fodder, and cumin are the major crops

in the selected districts. Major fruits in Quetta district are apple, grapes, plum, apricot,

and peach. While, turnip, spinach, cauliflower, cabbage, carrot, radish, broad beans are

major Rabi5 vegetables and tomato, lady fingers, tinda (apple gourd), brinjal etc are Kharif6

vegetables. Total crop area was reported as 8661 hectares with production of 64, 874 tons

in the year (2017-18) as shown by Appendix D. The market value of these products is

estimated at PKR 29522.51 million. Out of which, apple share is recorded as almost 2

percent (PKR 517.75 million).

District Pishin and Killa Abdullah are famous for wide variety of table grapes, apple,

apricot, plum, peach, pomegranate etc. Wheat is the major winter crop and is staple food.

Tomato, lady fingers, brinjal, pumpkin, turnip, radish, carrot etc are the main vegetables in

5 Rabi crops are sown in autumn or early winter and harvested in spring or early summer 6 Kharif crops are sown in summer and harvested in late summer or early autumn

48

these areas. Fruits contributes some 10.5 percent in the agriculture economy of Killa

Abdullah district (Appendix E). Apple is the leading fruit and has more than 74 percent

share in all fruits and nearly 8 percent share in all agriculture produce in the district.

Similarly, apple is also imperative for the livelihoods of Pishin district, which has 31

percent share in all fruit value and some 25.5 percent share in all crops as shown by

(Appendix F).

District Killa Saifullah mainly produces apple, followed by wheat, apricot, tomato, peach,

pomegranate, almond, carrot, cauliflower, cherry, grapes, maize, peas etc. More than 56

percent apple production of Balochistan takes place in Killa Saifullah. It is the district's

most important source of income for livelihoods, contributing almost 64 per cent of the

district's total agricultural GDP (Appendix G). Similarly, fruits including apple, peach, plum,

apricot, and cherry; wheat, onion, vegetables, potato, barley, cumin etc are grown in Kalat

district. Fruits had a share of more than 28 percent in all of the district cropped area

during 2017-18 as shown by (Appendix H). Of this, apple contributed almost 42 percent

and 12 percent to the fruit and cropped area respectively. The market value of these

products was expected to be PKR 6901.84 million, with an apple share of 55% in fruit and

26% in all primary products.

3.2.4 Available processed products in the selected districts

The selected districts produce variety of horticultural products, which are an important

source of income for rural population. Almost all of the produces here are marketed fresh

only. However grapes, apricot, plum and tomato drying also takes place using obsolete

methods. Even at Quetta, near to no processing industry exist to process horticultural

products. There is absence of juice, jams, jellies, vinegar and other processing units for

value addition. Post-harvest losses of these horticultural products are high, shipments of

perishable products takes place without refrigerated transport, very few proper cold

storage facilities available, there is absence of proper warehouses, and lack of skill and

proper know how to increase shelf life.

3.2.5 Potential trade routes

Balochistan has the geo-strategic importance for exporting its produce to the rest of the

world. Currently, fruits and vegetables from Pakistan travel to Afghanistan and central

Asia mainly through Chaman and Torkham borders. On the other hand, citrus, mango, and

other commodities are being exported to Iran and the Persian Gulf via Taftan border.

Moreover, Gawader is a port to both the Persian Gulf and Central Asian countries, which

after development will effectively link some 64 Asian and European countries. Gawader

has all the necessary features to turn into a regional center of trade and transportation.

49

Gawader has an international seaport, with all its ideal geographical location, economic

and geo-strategic importance.

3.2.6 Current buyers (local and international) and the level of sales, export with market

prices

Producers as well as local contractors trade apples across the country to various markets,

often to other provinces of the country. The two most popular marketing networks, such

as producer-led and local pre-harvest contractor-led, are prevailing in the province.

According to the FGD survey (2020), Pre-harvest contractors mostly sell apples in Lahore,

Rawalpindi, Islamabad and Karachi markets, while apple farmers sell their produce in

Gujranwala, Faisalabad, Karachi, Islamabad, Peshawar, Lahore, Quetta and other

wholesale markets. The selection of specific commission agents by Apple farmer or

preharvest contractor for the selling of apples is largely based on the loan facilities offered

by them. According to FGD survey (2020) respondents, there exist close business ties or

collusion between contractors and commission agents and cold stores according to which

capital is provided to preharvest contractors to buy Apple orchards and in return, they

ensure the flow of Apple to those particular market actors.

Pakistan imported some 6.98 million kg of fresh apple with a market value of PKR 356.85

million or PKR 51/Kg during (2017-18), mainly from Afghanistan and Iran. But exported

only 0.207 million kg of fresh apple with a market value of PKR 1.29 million or PKR 64/Kg

(Government of Pakistan, 2018) due to insufficient grading and packaging facilities and

non adoption of international standards and certifications. On the other hand, in terms of

production, apple is the third major fruit in Pakistan but not exported as citrus, mango and

banana. In Balochistan, the high-altitude regions grow high-quality apples and there is

scope for exports through the upgradation of apple industry in Balochistan. Moreover, a

good proportion of Pakistani apple consumers are also quality conscious and prefer

imported apples than the local apple, improvement in apple quality on modern lines can

fetch this market as well.

3.3 Enabling environment

This section aims to describe the enabling or business environment which creates a socio-

economic vision for the overall sector and guides it through robust regulatory and policy

frameworks. The enabling environment facilitates the competitiveness of value chain

operators by having access to required services

3.3.1 Relevant regulatory bodies (inspection body and capacity in the districts)

Balochistan Food Authority (BFA) is the only competent authority conducting food

inspections throughout Balochistan. Currently BFA does not have the proper setup or food

testing laboratories in other districts except the headquarter in Quetta. Balochistan Food

Authority was created in 2014 through the Act No. VI of 2014 of Balochistan provincial

50

assembly. The act extends to whole Balochistan except the tribal areas of the province.

The function of BFA was to monitor and regulate the food business in order to ensure the

provision of safe food. In particular, BFA provide scientific advice and technical support on

matters relating to food, collect and analyze food related scientific and technical data,

institute a network of food producers and consumers to assist in food safety and quality

control measures, organize food safety and standards related training programs and

promote awareness about food safety and standards, issue certificate to food exporters

for export purpose (BFA, 2014). The technical staff of BFA is being attached from other

government departments such as Food, Agriculture, Livestock and Fiesheries and

attached. These staff are mostly holding degrees in food sciences. There are four deputy

directors, Basic Pay Scale (BPS-18), with the support of 2 food inspectors (BPS-17) with

each deputy director.

3.3.2 Applicable laws, regulations, guiding policies and strategies at provincial and

federal level

The following sections present the policies and sectorial strategies related to the value

chain, including aspects of Agriculture, Trade, Standardization, Food Security etc.

3.3.3.1 Agribusinesses Development

The World Bank (2013) report titled “Balochistan Needs Assessment Development Issues

and Prospects” mentioned that there was considerable potential in Balochistan for

agribusiness development in horticulture and fruit processing. Priority should be given to

small scale interventions that can directly impact rural livelihoods and reduce poverty.

Measures have to be taken on moving up the production value chain. Moreover,

initiatives for the development of a cool chain for the horticulture industry would also

increase the capacity to export grapes, apples, and other fruits. Small scale interventions

should be given priority to reduce poverty and enhance rural livelihoods. For the purpose, the

main focus should be on boosting production value chain. Specially, in horticulture industry

the development of a cool chain would increase the export capacity of grapes, apples and

other fruits (World Bank, 2013).

3.3.3.2 Balochistan Agriculture Policy and Strategy 2020-2030 (draft)

Balochistan Agriculture Policy focuses on primary agricultural production in Balochistan. It

also discusses the role of different public sector agencies, businesses, and NGOs provide

essential goods and services such as policy, standards, research, information, advocacy,

mentoring, inputs, finance, transport, packaging, processing, marketing and promotion to

the agriculture sector in the province. For the policy preparation, a comprehensive supply

chain approach has been used that helped farmers and other stakeholders point out the

issues across the various stages of the supply chains. The policy is being prepared with

51

collaboration of FAO, provincial and federal agriculture departments and hopefully the

draft policy will be soon approved by the provincial government for implementation.

3.3.3.3 Balochistan comprehensive development strategy (BCDS, 2018)

Government of Balochistan plans to promote industry to enable Balochistan to exploit its

natural resource potential of fruits, fish, wool, leather, meat, and minerals. The focus is

also on developing value chains in the province for the products that are presently

produced in the province but their value addition takes place outside Balochistan (BCDS,

2018).

With public private partnership, the establishment of modern agriculture markets at

strategic locations with initially one agri-marketing consortia established linked with

smaller markets at district level and then would be expanded at tehsil level. These can be

gradually equipped with cold storages, processing and value addition facilities. These

facilities will also be having the marketing information of all national markets and such

information can be disseminated to grass root level under proposed ICT Extension model.

CCDS also emphasizes to ensure availability of agriculture credit through a special

arrangement with the State Bank of Pakistan (SBP) for Agriculture, livestock, fisheries,

markets, processing and packaging etc. This can be initially started by evolving a Credit

Guarantee scheme to create greater confidence of the financial sector and the customers.

BCDS also proposes to evolve a program for grant of subsidized inputs to women farmers

including certified seed and fertilizer for the production of high value products. More

focus would be on women through dedicated interventions under on- going and new

community empowerment programs (BCDS, 2018). It also suggests to formulate

Agriculture Policy for Balochistan in line with the Integrated Water Resource Management

(IWRM) Policy 2006 to cover all major farming systems.

3.3.3 Existing physical infrastructure

3.3.3.1 Road infrastructure

This section indicates how existing road infrastructure hinders the transport of goods

which necessities additional protection of the products through better packaging etc. and

reduces their shelf-life. Balochistan’s road network was about 33,588 km in length by

2012, out of which 20,221 km (60%) were gravel roads, while 18,367 km (40%) were

metaled road. The metaled road includes 8 national highways of 3600 km; the rest are

provincial highways. In Balochistan, the road density (road length per km2) is 0.09 km,

while the national road density is 0.33 km, Punjab 0.51 km, Sindh 0.57 km and KPK 0.30

km (MPDR, 2013; BCDS, 2013). Moreover, most of the existing provincial highways are

generally in poor condition and in terms of road maintenance, there is a huge backlog and

some 70% to 90% of the road networks are in need for urgent repair. These poor roads

52

not only cause an increase in transport cost but also cause wear and tear to the heavy

transport vehicles. The repair and maintenance budget of these roads has been

insufficient to repair the road in remote and far flung areas of the province and this issue

has not been in the top priorities of the provincial policy makers for a long time (BCDS,

2013). These Poor roads add to high post-harvest losses of agriculture products specially

the perishables.

Moreover, due to global competition the transport and logistics services cost is decreasing

worldwide, but in Pakistan these costs are quite high when compared to the region, which

is affecting the export competitiveness of the country (MPDR, 2013). Keeping the above

context in mind, in the 11th five-year plan of Government of Pakistan, a thematic change

to the traditional definition of the ‘transport and logistics sector’ was proposed. i.e., it will

not be just confined to physical infrastructure such as rails, roads and transport but will

include services such as packaging, delivery, storage and trade logistics as well.

3.3.3.2 Storage facilities

Storage facility helps stabilize agricultural prices which are highly volatile most of the time,

and evenly distribute the supply. In Pakistan, adequate and efficient storage facilities at

farm and market level in both the public and private sector are lacking that is eroding

power of farmers to retain the product longer for better price (MNSR, 2018). The cold storage

facilities are owned either by Arthis, other middlemen who provide storage facilities to

farmers for some fruits and vegetables to farmers. Farmers dependency causes the

involvement of some middlemen which could have been otherwise avoided. The public

owned storage facilities are not adequate to fill the gap and store the surplus production.

Moreover, the available storage facilities are not used properly. In case of non-

refrigerated storage, frequently the produce is not stored in a ventilated and proper

sanitary space or any preventive measures for insect and disease control taken. Moreover,

the overwhelmingly fragmented production and marketing system also makes

refrigeration non practicable.

According to the Ministry Planning Development and Research (MPDR), the extent of

post-harvest losses of fruit, vegetables and other perishable good are estimated to be

about 35% in Pakistan due to the absence of appropriate transport logistics, lack of cold

storage facilities, and refrigerated containers. According to World Bank (2013), in Pakistan

the absence of refrigerated transport for fruits and vegetables, inadequate storage

facilities, and the lack of processing and packaging facilities weaken the agricultural

marketing system (World Bank, 2013).

In order to appreciate the enormous potential of the horticulture sector in the

international market, MPDR in the 11th five-year plan, the Pakistan Horticulture

Development and Export Corporation (PHDEC) was assigned the task of developing

infrastructure for CCS using public-private partnership modalities. Moreover, in order to

53

enhance exports of perishable goods, the plan also included the development of a well-

integrated Cold Chain System (CCS) infrastructure such as pack houses, cold storages,

reefer containers, reefer yards and testing labs in the country (MPDR, 2013).

The fruit and vegetable cold storage capacity of the province has improved over the last

few years. There are some 14 cold storage facilities in Quetta, 15 in Kill Abdullah, and 1 in

Pishin. There are no cold storage facilities in Killa Saifullah, Kalat and Ziarat.

View of cold store in Killa Abdullah where wooden crates and cartons are stored together

Figure 7: Apple storage in Killa Abdullah

3.3.4 Agricultural extension service providers

The agriculturr extensión service in Pakistan, generally train farmers in technical aspects of

production and plant protection, but not in marketing due to lack of marketing extensión

skills. The lack of marketing extension services, restrain farmers to properly plan

production and marketing of their produce and get optimum returns (MNSR, 2018).

In Pakistan agriculture extension is primarily a provincial subject. The federal government

however, provides back-sopping in terms of research, institutional development,

agriculture credit, marketing intelligence, market intervention and trainings etc. In

Balochistan, the Directorate of Agriculture is the main government authority involved in

fruits marketing development. The extension methods applied by the agriculture

extension department includes mainly the field demonstrations and distribution of written

information in the form of leaflets, brochures, booklets etc.

54

The FGD survey (2020) shows that private extension institutions can be rarely seen in

agricultural production and marketing extension service in the province except the input

suppliers/private enterprises in (fertilizer, pesticides, machinery etc). Their major focus is

on sale of their products through the use of media advertisements, leaflets, field

demonstrations, personal contacts and exhibitions. Their main beneficiaries are relatively

large farmers who are financially sound and have access to improved technologies.

In the private sector, some NGOs are quite active particularly the Balochistan Rural

Support Programme. Their approach for the agriculture extension activities is trainings

and demonstrations. The FGD survey (2020) shows that in Balochistan the activities of

agriculture extension department are severely obstructed by lack of funds, lack of

technical personnel, and lack of training. Baloch and Thapa (2019) reported that the top-

down centralized method is used to provide the agriculture extension and technology

transfer to farmers in Balochistan. Under which the officers are mostly skewed toward

large farmers and non beneficial to small holder farmers who constitute the largest

proportion of farmers in the country- consequently affecting agricultural production and

rural incomes. Baloch and Thapa (2019) suggested that in Balochistan, to enable more

farmers get farmers from the extension services the decentralized or bottom up approach

should be implemented. Moreover, the required facilities such as financial resources, well

trained officers, logistics etct for field may be provided to the extension staff to enable the

resource poor agriculture extensión department in the province serve the farming

community (Baloch and Thapa, 2019). Moreover, due to globalization and

commercialization of agriculture, the marketing extensión services are the need of the

time and should be provided to the farmers (MNSR, 2018).

Agriculture Extension (AE) is the wing of the provincial department of Agriculture and

Cooperatives (DAC) and possesses hierarchy throughout the province. At the district level

the department of agriculture extension is led by the Deputy Director Agriculture

Extension (DDAE) who is 18 grade officer. He does have office set up with vehicle and

operational budget to undertake field activities. Besides him there are three more DDAE’s

which include, DDAE Soil Fertility, DDAE On Farm Water Management, and DDAE Plant

Protection. Each DDAE is supported by Agriculture Officers of grade 17, their number vary

from district to district. DDAE’s and Agriculture Officers generally hold Bachelor and/or

Master’s Degree in any Agriculture discipline. Further down the hierarchy are Field

Assistants who are generally 2 to 3 per tehsil. The field assistants are supported by Beldar7

who does the farm work. Except DDAE Agriculture extension, the other DDAEs and

Agriculture officers have no operational budget nor transport facility to access farmers.

Similar is the case with the Field Assistants and Beldars.

7 A lower grade government servant hired for doing labour job in the field

55

According to the Director General Agriculture Extension, more than our 98% budget is

spent on salaries and allowances. Only 1 to 2 percent is left in which we have to pay for

the utilities of our Quetta office and offices and agriculture farms in other districts as well.

Due to financial constraints currently, the AE is struggling to deliver its functions as it is

underfunded and under-resourced. Moreover, as the farming population it serves is

sparsely distributed throughout the province, makes its work more difficult. The following

measures are suggested for the improvement in performance of AE through this project.

Training opportunities for AE officers and staff to enable them to play leading role

in marketing extension services provision to improve fruit and vegetable value

chain performance;

As agriculture is a technical field, the department should nominate the right

person for the right job someone with strong agriculture background and

qualification.

Improve coordination with the research institutions, universities, and development

sector

The capacity building of AE staff on modern production and marketing practices of

fruits and value addition

3.3.5 The Codex Alimentarius International Food Standards

There are various technical requirements of various certifications such as SPS, ISO, HACCP,

Euro-Gap, and Golbal-Gap on the exporters to be met. The compliance cost of these

certifications is a big barrier to the agriculture product exporters of the developing

countries (Gómez et al. 2011, cited by Babar, 2014).

Codex food safety standards are part of the Sanitary and Phytosanitary measures

agreement of the World Trade Organization (WTO). The Codex standards are guidelines

and codes of practice regarding the fairness, safety and quality of international trade. The

purpose of Codex Alimentarius is to ensure safe and good food for everyone and

everywhere (FAO and WHO). Codex take care for food safety issues especially with regard

to the use of veterinary drugs, pesticides, food additives and contaminants. In many

countries, Codex Standards serve as part of national trade rules for those countries who

adopt these.

The Codex standards have implications on food exports from Pakistan. As compares to

developed countries, Pakistan implements lower SPS standards both in terms of quality

and quantity therefore, like many other developing countries of the world our food

exports face many hindrances. However, this agreement facilitates and acknowledges the

developing countries problems in complying with SPS measures and favors them for

special and differential treatment.

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Pakistan’s major constraints in adhering to the SPS agreement have been its insufficient

ability to participate in dispute settlement procedures and its inability to show that the

domestic SPS measures are at par with the developed countries requirements. These

constraints are largely due to insufficient scientific and legal expertise and limited financial

resources (Planning commission, 2009). As a result of these, Pakistan considers the SPS

requirements as impediment as it’s agricultural and foods products exports abilities to

developed countries are largely constrained by the SPS conditions. Additionally, the

prevalent production and marketing system of food is not well-matched with the SPS

standards and requirements given the weak and fragmented SPS controls measures in

Pakistan (Planning commission, 2009). Moreover, the SPS measures applied by developed

countries are stricter than developing countries and therefore, in order to reduce

impediments in the way of Pakistan exports which are largely primary products, significant

structural and organizational changes on large-scale are required to comply with SPS

requirements. .

3.3.5.1 Legislation regarding SPS measures

As part of National Food Security Policy (2018), and to improve the implementation of

food safety standards in Pakistan in the light of SPS measures, a bill for National Food

Safety, and Animal and Plant Health Regulatory Authority has been approved by the Prime

Minister of Pakistan with stipulation to have organogram. The parliament has yet to approve

it. After its approval from the parliament it will become act. for the provision of safe food to

its growing population. This legal framework improves the implementation of food safety

standards in Pakistan for the improved compliance of the SPS measures. Under this the

following measures are taken: Guidelines in the light of SPS measures for adherence in

agricultural imports and exports, inspection and quarantine controls of food products

exports at points of entry and exit, co-ordination with Provincial Governments on matters

relating to management of SPS related risks associated with the agriculture products

marketing and production, nomination of the accredited testing facilities and laboratories

for official controls relating to the SPS measures, coordinate with international

organizations regarding SPS matters and saving national interest; development of legal

and regulatory framework for improved implementation of food safety standards in light

of SPS measures, addressing food safety regulations particularly for milk, meat, fruits and

vegetables, facilitate enhancement of food and horticulture exports up to 20 percent,

legislate agricultural and food safety regulatory laws, and establish credible regulatory

trade regimes for food products (MNFSR, 2018).

3.3.6 Access to resource for food manufacturing

The following section presents the details of access to resources for food manufacturing in

Balochsitan and Quetta.

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3.3.6.1 Water, electricity and human resources

In Balochistan the districts under study are overwhelmingly dependent on groundwater

which is pumped from hundreds of meters. Electric tubewells are source of water.

Agricultural tubewells are subsidized by the government in their electric bills. In Quetta,

Water and Sanitation Authority (WASA) is mainly responsible to supply drinking water. For

new tubewell, the permission for WASA is a requirement. Electricity is supplied by Quetta

Electric Supply Company. The time to get new connection can vary from weeks to months

due to their procedural formalities. Balochistan Agriculture Colleage (BAC) and Agriculture

Training Institute (ATI) Quetta are responsible for the training of agriculture graduates and

agriculture department’s employees and farmers. BAC is a degree awarding institution.

ATI is mainly responsible to train the field staff of agriculture department. In short, for the

human resource development, institutional capacity exist in Balochistan but international

best practices still need to be disseminated.

3.3.7 Education system in the province

There are 65 intermediate colleges, 35 graduate colleges, 4 residential colleges, 5 cadet

colleges, 3 poly technic colleges and 10 universities and Balochistan Agriculture College

(BAC). BAC is going to be upgraded as Agriculture University and the construction work of

the campus is going on.

Currently, there is no degree offered specifically in value chain, however, the business

administration schools of two universities namely, Balochistan University of Information

Technology, Engineering and Management Sciences (BUITEMS) and University of

Balochistan (UOB) offers the supply chain management and agriculture economics course

in undergraduate and graduate levels. Moreover, the departments of economics at the

various other universities, colleges and research institutes in Balochistan are also engaged

in generating and preparing agricultural production and marketing related information

through cost of production and agricultural marketing studies at the various levels of

higher education research.

Moreover, the Balochistan Agiculture College (BAC) is the only agriculture specific

institution in Balochistan offering some courses on agriculture value chain. The college

offers Bachelor of Science (Honors) Agriculture degree with specialization in Horticulture,

Food Technology and Agriculture Economics. The curriculum includes of these degree

programmes certain courses related to fruit and vegetable value chain.

At BAC, the Department of Food Technology was established in March, 2013 to bring

measurable enhancements in the level and quality of education and research in food

related fields. At present, the Department offers four years B.Sc (Hons.) degree in Food

Technology and more than 200 students have graduated and 50 students are enrolled in

5th and 7th semester together. The objectives of the department are; (i) to impart quality

58

education to train manpower in the field of Food Technology to meet the demand of

growers & food industry; (ii) to conduct research on various aspects of Food Sciences and

Technology; (iii) to develop technologies to reduce post-harvest losses of fruits and

vegetables. Moreover, a Food Technology Laboratory is available at BAC, where jam, jelly

and juice making trainings are given and experiments are conducted for farmers and

students. There are eight faculty members including one professor, one assistant

professor and 6 lecturers in the department of food technology at BAC. The value chain

related courses offered in BSc (Hons) food technology are Food processing and

preservation, Food laws and regulations, food packaging, post-harvest technology, and

food quality management. Moreover, to upgrade the food technology laboratory at BAC a

concept note has been submitted to the UNIDO for the up gradation of the laboratory in

terms modern equipment.

While at the department of Horticulture at BAC there are currently 1 associate professor,

2 assistant professors and 2 lecturers. The value chain related courses in BSc (Hons) are

food processing and preservation and post-harvest horticulture offered at the department

3.3.8 Access to finance (credit opportunities and relevant banks in the province)

The institutional sources of credit that includes commercial banks and other public

institutions are availed by some 20-30 % apple producers due to collateral requirements,

lengthy procedures, less accessibility and high interest rate on loans (FGD, 2020). Some 26

commercial banks are providing agricultural credit. These are two specialized banks

namely Zarai Taraqiati Bank Limited (ZTBL) and Corporative Bank Limited. ZTBL Bank offers

a number of special loan programs, including production loans, development loans,

agricultural loans, off-farm Income generating loans and cottage industry loans. In order

to enable farmers to buy modern inputs and technologies to improve agricultural

productivity and improve their living standards, many commercial banks such as National

Bank of Pakistan (NBP), Habib Bank Limited (HBL), Allied Bank Limited (ABL), Muslim

Commercial Bank (MCB), and Union Bank Limited (UBL), fourteen domestic private banks

and five microcredit banks are also providing agriculture credit facilities for crop

cultivation, livestock, poultry farming and fish farming (Chandio et al. 2017). Moreover,

large farmers due to their accessibility and influence get the loan facilities easily from the

commercial bank but the small farmers on their other hand are mostly deprived of this

facility due to their less accessibility and inability to meet the procedural requirements.

According to FGD survey conducted in 2020, apple farmers mostly rely (70-80%) on non-

institutional sources of credit to meet production, marketing and other expenses. These

sources include crop inputs dealers, Arthis (commission agents) and other marketing

middlemen such as pre-harvest contractors and processors. For example, in fruit and

59

vegetable markets, apple farmers are financed by any one or more actors with whom they

do business deals such as Arthis, Ladanwala, or Cold storage owners. The reasons for

accessing them by apple farmers were accessibility, easy availability, no security

requirements. However, the problems with non-institutional credit were that it was

conditional, and the amount disbursed was usually not concomitant with the needs of

farmers. The lender is in a strong bargaining position due to his financial capabilities and

securing excessive profits. However, the borrowers who are generally in weak bargaining

position have to compromise on prices for their produce.

3.3.9 Current and future negative impact of climate change on the production and

processing of the value chain

According to Intergovernmental Panel on Climate Change IPCC (2014), factors such as

water stress, sea-level rise, floods, droughts, and tropical cyclones can cause decreases in

agricultural productivity and aquaculture and can cause food insecurity in many countries

of Asia. FAO (2017) reported that the most significant hazards in Pakistan are climate

change-related floods, droughts and cyclones. In Pakistan response on climate change has

been mainly reactive during post-disaster period and less on the prevention and

adaptation. FAO suggested that in order to combat the climate change issues, more inputs

from climate change experts and a broader partnership framework is needed. MNFSR

(2018) revealed that in Pakistan, the climate change related projections shows greater

likelihood of variability in the climate and weather with regular extreme events such as

droughts and floods and the pressure on the limited surface and groundwater is likely to

increase tremendously, and the agriculture and livestock sectors are very likely to be

affected the most (MNSR, 2018). Moreover frequent and severe droughts and floods

arising from climate change will have serious management implications for water resource

users (Halcrow, 2008). The ecosystems are threatened and limiting our capacity and in

the attainment of sustainable agriculture in the long run.

Due to climate change effects, the crops yields are low and declining over time (MNSR,

2018). The climate change related challenges are more severe in Balochistan due to poor

resilience and adaptive capacity. Leads (2017) revealed the realization of Sustainable

Development Goal (SGD) 13 (strengthening resilience and adaptive capacity) seems

challenging in Balochistan province due to its low adapting capacity to meet the

challenges of climate change related hazards such as droughts, and floods. There are

various factors responsible for low adapting capacity against the adversaries of climate

change such as lack of provincial climate change related policy, less awareness about

climate change, poor governance and insufficient focus on climate change in education

and research (Lead, 2017).

The poor adapting capacity in the form of absence of sufficient preparedness for climate

change minimization and mitigation, the impacts have been noticed in the form of

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frequent droughts and floods. Droughts have impact on food security caused primarily by

the decline in crop yields, and livestock losses and depletion of water for agricultural and

daily use. The apple production areas of Quetta and Pishin were no exception in terms of

the adverse effect of drought in the form of reduction in fruits production by 20-40% and

yields by some 15-25% during the 2013-14 drought (BUITEMS and UNDP, 2015).

To cope with the climate change effects, some adaptation strategies have been

implemented in Balochistan by the Government and other national and international

agencies such as allocations in Public Sector Development Programme (PSDP) for

improved water management related initiatives such as water courses and provision of

water delivery pipes, development and construction of check and delay action dams for

water storage, establishment of cold storages for fruits, improved packaging material, and

construction of water tanks (BUITEMS and UNDP, 2015).

MNFSR (2018) suggests that in order to cope and adapt to climate change in future, an

adaptation program is required in order to better deal with climate change impacts.

Specifically, the measures such as adopting soil and water conservation technologies,

enhanced use of high efficiency irrigation systems, promoting low delta high value

cropping pattern, new cultivars of fruits, and climate smart agriculture practices with

maximum water productivity and the treatment of waste water for use in agriculture are

need of the time. The long-term measures focused on improving groundwater

management and governance, business and farm diversification strategies (e.g. selecting

drought-tolerant varieties) and reinforcing legal, policy and institutional frameworks for

drought risk mitigation are suggested.

3.3.10 Situation analysis and needs assessment of value chain stakeholders

Situation analysis takes a snapshot view of a situation and where things stand at a certain

point in time. It is sometimes accomplished by means of a SWOT analysis, to examine all

aspects in relation to the results of the project in question. Situation analysis while using

market research and other observations for decision making, help structure strategic

marketing plan and determine its effectiveness, allowing making course corrections when

the plan isn’t achieving expected results. The results of FGD are presented in the following

section to delineate the situation analysis and need assessment of value chain

stakeholders

3.3.10.1 Apple value chain map

Design a value chain map or flow diagram with the different stages the product is going

through Value chain mapping illustrates the way the product flows from raw material to

the end markets and presents how the industry functions. The dimension of value chain to

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map are, the major processes, actors involve and their function, flow of product, change in

value throughout the chain, types of business services feeding into the chain etc.

3.3.10.1.1 The core process in the apple value chain

The core processes involve in the apple value chain are presented above. These processes

start from the inputs provision, where apple farmers acquire the crop inputs such as

plants, fertilizer, water, labour and other inputs. Afterwards, the trees need intensive care

in the form of supply of necessary inputs, tree pruning, thinning etc. The next process is

production, the attainment of which requires 7-10 years. In case of Balochistan, where

mostly traditional varieties such as Tor Kulu, Shin Kulu, Kaja, Amri, Mashadi etc are grown

which requires 7-10 years to start fruit bearing. The 3rd process starts after the product is

ready to harvest which includes picking, sorting, grading, packing at farm. Afterwards, the

produced is transported to different markets where is it either sold out or kept in cold

stores. Some of the produce is processed into juices, jams, extracts, syrups etc mostly in

Karachi, Lahore and other cities where such facilities are available. Some of the produce

finds its way towards the international markets, while imports mainly from Iran,

Afghanistan, and China also find their place in local markets. The final process is retail

where the apple is sold to consumers.

3.3.10.1.2 Actors involve in the apple value chain in Balochistan and activities

undertaken by them

After mapping the main processes involve, it is possible to move on to the actors- those

people involve in apple value chain and what they actually do. Inputs suppliers are those

who supply production and marketing inputs usually on credit for one season. They

receive their loans back from the farmers after the crop is harvested and sold. The FGD

survey (2020) respondents revealed that the price of borrowed crop inputs was 2-5%

higher than the inputs bought on cash.

Contractors are those actors who buy the orchards for one season mostly at the blossom

stage and also when the crop is ready to harvest in rear cases. The contractors after

buying the orchard take on the responsibilities of all the orchard management practices

such as watering, pesticides application, fertilizer application etc. Transporters are mostly

Inputs supply ProductionPicking, grading

etc. Transport, Store

Processing Export/Import Retail

Inputs supplier

Fruit Producer

Contractor/ Trader

Arthi Wholesaler Retailer Consumer

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local people who use ordinary goods trucks to supply apple to different markets. Some

500 to 600 creates are loaded into a small truck, while 850-1000 crates are loaded into a

large truck. The apple is stored in the cold storage facilities in Karachi, Lahore, Islamabad

and other cities where the wholesale markets exist. Commission agents locally called as

Arthi are actors who sell the farmers produce through auction and charge commission at

the rate of 5-7% of the selling price and doesn’t takes the title of the product. Apple is

exported in small amounts to UAE, Sri Lanka and other countries due to different

standards put in place by different countries. While apple imports from Afghanistan, Iran

and China are made both legally and illegally under the border trade arrangement.

Wholesaler buys the product in auction through participation in the bidding process. He

takes the title of product, and after sorting, grading and repacking. He mostly sells the

produce to retailers or consumers. Ladanwala buys the produce in Quetta market and

sells in other markets of the country for profit. Retailer is the last actors in the value chain

who buys the produce from the wholesalers or in the auction, and sells it to consumers.

The flow of apple and its bi products through various marketing channels is presented in

the following section:

3.3.10.1.3 Flow of apple through the value chain

As shown by Figure 8, apple value chain starts with the inputs supplier who provides

inputs to farmers mostly on loan. Inputs include pesticides, fertilizers, packaging material

etc. According to the FGD survey (2012), farmers showed their dissatisfaction over the

quality and price of the inputs. The inputs are usually bought on credit which is

reimbursed after the apple is marketed. Apple farmer either sell the apple to the

contractor or market through the commission agent. The contractor is responsible to

undertake all the production and marketing activities till the produce is disposed off. For

pre-harvest contractor the money to buy orchards usually comes from the commission

agents who then look after the marketing of the produce as well. The contractor works in

an environment of risk and uncertainty (Mushtaq et al. 2016).

Those apple farmers who self-market also gets financial support from the commission

agents with the condition that the produce will be marketed through them. The marketing

of the apple is undertaken mostly in a haphazard way both by apple farmer and the

contractor. Mushtaq et al. (2016) reported that in Balochistan there is non-availability of

any technical advice regarding the modern production technology of apple orchards. On

the marketing side, apple grading, packing and marketing standards are not followed and

low and good quality apple is mixed. SPS measures are not adopted. The produce is

marketed in a traditional manner and cold storage facilities are poor leading to high post-

harvest losses.

63

Around ten percent of apple produced in Balochistan is marketed to Quetta wholesale

market while the remaining 90 % is marketed to the distant wholesale markets such as

Lahore, Karachi, Islamabad, Dera Ghazi Khan, Rawalpindi, Multan, Hyderabad, Gujranwala,

Kohat, Peshawar and other markets.

Major Flow

Minor Flow

Inputs supplier

Plants, fertilizer, pesticides etc.

Farmer

Contractor

Commission Agent/

Arthi

Wholesaler

Retailer

Apples

Domestic Consumer

(Apple & value

added products)

Processors

(Apple value added

products)

Cold Store

Exporte

rs

Ladanwala

International

Consumer (Apple &

value added

products)

64

Figure 8: Map of apple value chain

Figure 8 shows the flow of apple through the various marketing chennls facilitating by

various marketing actors.

The cold store owners (who are also commission agents in most cases) of Lahore, Karachi

and other cities also invest money by financing apple farmers and contractors with the

condition that the produce will be stored with them. The role of inputs dealers,

commission agents and cold store owners is very important by providing necessary capital

at the time of need to fuel the apple economy at the time of need. However, this puts

apple farmers at a minor disadvantage in the form of compromised prices. Packaging

material is not produced locally rather readymade packaging material is imported from

Karachi, Lahore, Faisalabad and other cities. Two types of the packaging material are used

i.e., wooden crates and carton boxes. For wooden crates, the wood sheets are imported

from Punjab along with skilled labour to nail the wooden sheets to prepare wooden

crates. Cartons are ready to use and available with many packaging material sellers.

A very small amount of apple is exported due to non-availability of the required facilities

and the obsolete methods used. As far as the value addition of the Balochistan apple is

concerned, a very small part of the produce is processed to prepare value added products

such as apple juice, syrup, jam, jelly, squash, etc for which mostly C and D grade apples are

used (Mushtaq et al. 2016).

3.3.10.1.4 Gross margins analysis of apple

Gross Margin is the difference between the gross income or total revenue and the direct

costs (or variable cost of inputs) required for production. Gross Margin analysis is a

very important tool to determining the level of farm profitability. It also tells the

percentage of various costs items in the direct costs. Table 6 shows the gross margin of

apple farmers for low and high altitude apple producing areas. The analysis of various cost

components in the variable/direct costs shows that largest cost incurred was on irrigation

followed by pesticides, labour and fertilizer and farm-yard manure (FYM). According to

FGD survey (2020), farmers reported the rising water shortage due to frequent droughts

and the massive installation of tubewells. The droughts are causing an increase in pest

attack and resistance to pesticides increasing the cost of crop protection. Moreover,

farmers also complaint about the fragile electricity supply in the peak demand season of

apple. The other dimension of the issue is that the apple varieties grown in the area are

low density and high water demanding. Farmers irrigate orchards using traditional

flooding methods and over irrigating the trees by more than their water requirement

(Saeed, 2016).

65

The comparison of the two altitudes shows that apple farming at high altitudes have

advantage than the lower altitudes in terms of lower cost and higher income due to more

favorable climatic conditions prevailing over there for apple growth (Table 6). The per kg

gross margin at farm gate was Rs. 11.30 at lower altitudes and 39.21 at higher altitudes

showing, showing a more than three time returns from apple.

The gross margins analysis of apple produced in different areas of Balochistan helps

estimate the difference between total revenue and direct costs.

Table 6: Gross margins analysis of apple (per acre)

Costs/Revenue Low altitude (1400-1900) meters

% of total cost

High altitude (1900 & above) meters

% of total cost

Tillage 3,500 3 3,000 3

Fertiliser & FYM 10,500 9 11,519 10

Pesticides 21,138 18 18,950 17

Labour 13,524 11 15,163 13

Irrigation 66,500 56 62,500 55

Supporting stick & rope 4,500 2 3,000 1

Total Variable costs 119,662 114,132

Yield (Kg/acre) 6,400 5,500

VC cost per kg 19 21

Price per kg 30 60

Income (Rs/acre) 192000 330000

Gross margin (per acre) 72,338 215,868

Gross margins (per kg) 11.30 39.21

Source: FGD survey (2020)

The variable cost per unit area is estimated that will help estimate the net return of apple

producers after meeting the production and marketing costs at various altitudes. It also

helps understand the worthiness of apple farming in different areas of Balochistan and

guide policy makers for future planning about agriculture sector.

3.3.10.1.5 Marketing costs and marketing margins analysis

Marketing margin is the difference between the price received by the apple producers and

the price paid by the apple consumers. It is also computed as the percentage share of final

price received by each marketing intermediary. There is inverse relationship between the

extent of marketing margin and the income received by apple growers from the sale of

66

apple. High marketing margins mean low share of apple producers in the consumer price

and high share to various middlemen and marketing costs and vice versa.

Market intelligence generally provides policy signals about the overall success of

agriculture. By using price indicators, the main strength and through it combines nutrient

deficiency areas with surplus areas, domestic markets to foreign markets and vice versa.

In fact, the analysis of marketing costs and margins helps in the measurement of

marketing efficiency for both input and exit markets as well as for the whole market or

supply chain (FAO, 2011). In Balochistan's perspective, these questions have been

incredibly difficult to solve that each actor in the value chain earning a fair share of the

rates paid to consumers.

Results of the FGD survey (2020) presented as table 7 shows that the share of apple

farmers in consumer price was Rs. 60 and 30 in absolute terms and 44 % and 32 % in

percentage terms of the consumer price, showing that a lion shares 56 % and 68 % of the

consumer paid price goes to different market middle men and spent on marketing costs.

This is questioning the efficiency of the marketing system because the ultimate producer

gets a smaller share.

Table 7: Marketing costs and margins for apple (per kg) Market Functionary

Gross margin (Rs/kg)

Marketing Costs (Rs/kg)

Costs as % of consumer price

Net margin (Rs./kg)

Net margin % of consumer price

Farmer share as % of consumer price

Low altitude areas (1400 to 1900 meters)

Farmer 30 ------ 30 32 32

Contractor 74 36.8 39 7 7

Commission Agent

7 2 ------- 5 -------

Wholesaler 74 2 2 4 4

Retailer 80 5 5 10 11

Consumer price 95 46 54

High altitude areas (1900 meters and above)

Farmer 60 ------ 60 44 44

Contractor 112 40 29 12 9

Commission Agent

10 2 -------- 8 --------

Wholesaler 112 2 1 7 5

Retailer 121 4 3 12 9

Consumer price 137 34 66 Source: FGD Survey (2020)

67

The results also in table 7 show that the high altitude apple farmers as compare to low

altitude are getting double share in consumer price. Similar is the case with the other

intermediaries such as contractor, commission agent, wholesaler and retailer whose share

in consumer price increases as well.

The reason for the significant difference in profit margins was the favourable climatic

condition of high altitudes for apple growing than the low altitudes which is reflected as

significant difference in the marketing margins as well. The favourable climatic conditions

help in fulfilment of the chilling requirement at high altitudes (1200-1400 hours), less fruit

dropping, good colour and appearance, less disease and pest attack, more sugar and

water content, low post harvest losses etc. These all things reflect in the consumer price

(FGD survey, 2020).

3.3.10.1.6 Pre and post harvest losses of apple in Balochistan

Table 8 shows the magnitude of pre and post havest losses of apple in Balochistan. Seven

(2011-2 to 2017-18) years average production data was used. Preharvest losses mainly

occurs during the production due to fruit dropping, pest and diseases attack, drought like

conditions, high temperature, inappropriate variety selection. The extent of preharvest

losses was 5% reported by apple producers and preharvest contractors during the FGD

survey 2020.

Post harvest losses include the fruit losses during harvesting, fruit picking, handling,

packaging, transportation and processing. According to the FGD survey (2020)

respondents, the extent of post harvest losses was upto 20% of total production. The

preharvest and post harvest losses both together worth PKR 7816 million at 2018-19

prices (Table 8).

Table 8: Pre and post harvest losses of apple

S.No Description Average value (2011-

12 to 2017-18)

1. Quantity of Apple traded (77 %) of production (tones) ** 512,529

2. Pre harvest losses @ 5 % of production (tones) *** 25,626

3. Post -harvest losses @20 % of production (tones)*** 102,506

4. Total losses (pre-harvest + post- harvest @ 25 % of

production (tones)

128,132

5. Value of total (pre-harvest & post -harvest losses PKR

(Million)*

7,816

* Apple average wholesale price of PKR. 61000/- per tone in 2018-19 ** Source: various issues of agriculture statistics Balochistan *** FGD Survey (2020), MNFSR (2018), Usman (1996)

68

3.4 Socioeconomic characteristics of farmers

Figure 9 shows the socioeconomic characteristics of the FGD participants. The average

education level in all the districts was around ten years, showing the FGD participants

have enough literacy level to understand the purpose and importance of the survey. The

average age ranges between 40 to 50 years showing the experience of the group. The

average family size was quite high with the overall average of 30. The reason told by

respondents for such larger family size was the joint family system where many families

live and cook together for the cultural reasons. The average experience ranges between

18 to 25 years showing that the respondents selected were quite experienced, thus

increasing the validity of the survey. So for as the apple area owned by FGD participants in

terms of the percent of total farm area is concerned, it ranged between 45 to 75 % in

different districts. On average when all the districts taken together was more than 60 % of

the farm area, with the highest ratio in Killa Abdullah district (more than 75%), followed by

Kalat, Killa Saifullah, Quetta and Pishin. This is showing the importance of apple in the

cropping pattern which occupies more than 50 % of farm area.

Figure 9 shows the dependence on agricultue and access to mobile phone, television and

newspaper. The majority of respondents had agriculture as primary profession and source

of livelihood in all the districts. The results given as Figure 9 shows the highest proportion

of dependency on agriculture in district Killa Abdullah, followed by Pishin, Kalat, Quetta

and Killa Saifullah. The other professions included trade and business, government Jobs,

and labour Jobs.

Figure 9: Socioeconomic characteristics of FGD participants

0

10

20

30

40

50

60

70

80

90

Education(years)

Age (years) Family size (#) Experience(years)

Apple (acres) Farm size(acres)

Apple as % oftotal area

Quetta Killa Abdullah Pishin Killa Saifullah Kalat All

Source: FGD Survey (2020)

69

The results given as Figure 9 further shows that majority of repondents own mobile

phones, a small proportion of respondents in Killa Abdullah, Pishin and Killa Saifulla did

not own mobile phones. The ownership of mobile phone shows the Access of Apple

farmers in majority to the information using phones. The ownership of television and

newspaper shows mixed response on behalf of respondents. In Killa Saifullah, no

respondent showed the ownership of television, it may be due to the lack of television

signals over there. The other reason may be that due to local norms many people in rural

village avoid television at their homes.

To the question regarding reading the daily newspaper, the majority in district Killa

Abdullah, Pishin and Killa Saifullah reported yes, while in Quetta and Kalat the majority

responded in no. The possible reason may be the availability of android phones which

makes it easy to access the electronic version of newspaper reading for information

(Figure 10).

Figure 10: Dependence on agricultue and access to mobile phone, televisión and newspaper

05

1015202530

Quetta KillaAbdullah

Pishin KillaSaifullah

Kalat

No Yes

Dependence on Agriculture Mobile ownership

0

5

10

15

20

25

Quetta KillaAbdullah

Pishin KillaSaifullah

Kalat

No Yes

Television ownership Newspaper access Source: FGD Survey (2020)

70

3.5 Challenges of apple value chain and solution

The below given Table 8 presents the production, processing and marketing and policy

and enabling environment related issues and recommended measures to resolve these in

short, medium and long term. The highlighted part shows the issues and their proposed

solutions that come under the scope of this project.

71

Table 8: Challenges of apple value chain, solutions and roadmap

Issues Short terms measures (1-2 years)

Medium term measures (3-4 years)

Long term measures (More than 4 years)

Target stakeholder (s)

1. Production

Traditional apple rootstock are used, these require high chilling hours (1200 to 1400), late economic bearing (after 10 years), high water requirement that make these unsuitable in many areas specially low altitude upland areas.

- The dwarf apple M9 rootstock may be imported and introduced.

- Nurseries of M9 rootstock may be raised - Distribute the rootstock among apple farmers in the selected districts to propagate high density apple cultivars - Establish nurseries for the multiplication of high density apple cultivars

- Introduce high density apple cultivars with less chilling requirement, less water requirement

- Apple farmers - Agriculture extension field staff

Use of flood irrigation method

- Introduce drip irrigation for efficient water use on a pilot scale

- Extend the drip irrigation system to the selected districts

- Extend the interventions to other areas of the province

- Apple farmers - Agriculture extension field staff

Lack of know-how on optimum crop inputs use

- Soils and water testing facilities -Training on good agricultural practices (GAP)

- Training on proper crops inputs mix/ use such as fertilizer, Farm Yard Manure (FYM), irrigation, etc.

- Training on proper crops inputs mix/ use such as fertilizer, FYM, irrigation, etc.

- Apple farmers - Agriculture extension field staff

Apple produce is overwhelmed by Small sized fruit (10-20 %) of output, locally called Gola apple

- Training on tree pruning, thinning etc - Provide the tools required for pruning and thinning

- Replace the present apple cultivars with high density cultivars

n/a - Apple farmers - Agriculture extension field staff

Climate change, droughts, depleting water levels, electricity load-shedding causing water shortage

- Training on improved irrigation practices - Training on water saving techniques - Improvement in the quality and quantity of electricity supply

- High density cropping on high efficiency irrigation system

- High density cropping on high efficiency irrigation system

- Apple farmers - Agriculture extension field staff

High pre-harvest losses (5-10 %), due to lack of know how about proper crop management

- Training on Total Soluble Solids (TSS), firmness test, maturity index etc. of apple before picking

- Introduce apple cultivars at low altitudes with low chilling requirement

- Introduce apple cultivars at low altitudes with low chilling requirement

- Apple farmers - Agriculture extension field staff

2. Processing and marketing

72

Currently, near to no

value addition of

apple takes place in

the form of value

added products in

Balochistan

- Mobile grading

plants

- Establishment of

apple value addition

facilities such as apple

processing line and

apple juice, jam

producing units in the

selected districts

- Extend the

value addition

facilities to the

other areas of

the province

- Apple

farmers

- Current cold

storage

owners

-

Entrepreneurs

- Farmer’s

organizations

Apple grading,

packing and

packaging standards

are not followed and

low and good quality

apple is mixed

- Training on apple

grading, packing

and marketing

standards

- Establishment of

apple processing units

near the production

areas in the selected

districts

- Establishment

of apple

processing units

in other districts

- Apple

farmers and -

Agriculture

extension and

research staff

Minimize the role of

middle men

(commission agent,

pre-harvest

contractor) in apple

value chain

- Vertical

integration through

the apple marketing

channel

- Training of apple

farmers on direct

marketing

- Promote

producer –

retailer linkages

- Apple

farmers

- Contractors

- Extension

staff

- Retailers

Cold storage facilities

are insufficient, poor,

leading to high post-

harvest losses.

- Training on cold

store use

- Establishment of

cold stores in Killa

Saifullah and Kalat

districts

- Establishment

of cold stores in

other districts

- Apple

farmers

- Farmer

organizations

- Cold store

owners

- Extension

staff

Higher post-harvest

losses (30-40 %) due

to poor picking,

grading, packaging,

handling,

transportation,

loading and

unloading etc

- Training of fruit

pickers and

handlers on fruit

post-harvest

handling

- Provision of apple

harvesting and

collecting bags

- Provision of

modern packaging

- Provision of

precooling facilities

- Provision of

refrigerated transport

- Provision of

precooling

facilities

- Provision of

refrigerated

transport

- Apple

farmers

- Fruit pickers

and handlers

- Packaging

material

suppliers

73

material

Lack of ware houses,

farmers cannot

withheld the

produce to wait for

better prices

- Feasibility study

for the

establishment of

ware houses for

apple

- Establishment of

ware houses

preferably on farms

- Establishment

of ware houses

preferably on

farms

- Apple

farmers

Poor link of apple producer with other value chain actors, Market information systems (MIS) doesn’t exist

- Establishment of a mechanism for the provision of real time market price and other information from the other value chain actors to apple producers

- Training of farmers on MIS

- Training of farmers on MIS

- Agriculture extension and marketing - Apple farmers

Inadequate

transportation, The

produce is marketed

using obsolete

methods

- Awareness of farmers on the use of refrigerated transport

- Provision of refrigerated transport on trial basis in the selected districts

- Provision of refrigerated transport in other districts

- Apple farmers - Cold store owners - Extension staff

3. Policy & enabling environment

An apple value chain strategy to improve the create a PPP-based strategy for the apple sector

- Apple value chain strategy based on public private partnership (PPP) for the apple sector

- Apple value chain strategy based on public private partnership (PPP) for the apple sector

- Balochistan horticulture Policy

- Government of Balochistan and private sector

Import of Afghani, Irani apple depresses market prices for local produce

- Study the causes and impact of apple imports

- Recommend appropriate measures to minimize the harm to local apple industry due to apple imports

- Recommend appropriate measures to minimize the harm to local apple industry due to apple imports

- Government of Pakistan, Government of Balochistan

Product quality and safety

- Study the feasibility of up gradation of laboratories at Balochistan Agriculture College (BAC), Balochistan Food Safety Authority (BFSA) and Agriculture Extension Department (AED).

- Improvement of the laboratory testing capacities at BAC, BFSA and AED

- Improvement of the laboratory testing capacities at BAC, BFSA and AED

- BAC - BFSA - AED

Revision of vertical and horizontal standards

- As standards were adopted from other authorities, this

- As standards were adopted from other authorities, this needs

n/a - BFSA

74

needs to be revisited based on the risk analysis principle

to be revisited based on the risk analysis principle

Applied research for the industry

- Putting the developed research into practice particularly on proper production and processing practices

- Putting the developed research into practice particularly on proper production and processing practices

n/a - Industry - BAC - AED

Women and youth involvement

- Training on Cottage industry-women empowerment

- Training on candy making, jam, juice and drying of fruits etc

n/a - Women and youth

Public-private partnership building for the successful project interventions

- To avoid red tap/bureaucratic hurdles, driving seat may be given to the farmers.

- Improve coordination with farmers and agriculture extension

n/a - Apple farmers - Agriculture extension

75

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Mustafa, U. (1996). Inter provincial trade of apples. Proceedings of National Workshop on Agricultural Marketing (1996). Outreach and transfer of fruit technology in Balochistan. FAO and Department of Agriculture Balochsitan. Deciduous Fruits Development Centre (DFDC) Sariab Quetta. AG:DP/PAK/89/014, Occasional paper # 31. ISBN 969-8304-06-03.

Iqbal, M (1994). Proceedings of National Workshop on Agricultural Product Marketing Extension (1994). Outreach and transfer of fruit technology in Balochistan. FAO and Department of Agriculture Balochsitan. Deciduous fruit development centre Sariab Quetta. ISBN 969-8304-01-0.

Saeed, M. (2016). Horticulture in Balochistan: Challenges and Prospects. Proceedings of Pakistan Society for Horticultural Science. 2nd International Conference on Horticultural Sciences, February 18-20, 2016. Theme: Production Challenges and Food Security. Institute of Horticultural Sciences, University of Agriculture, Faisalabad, Punjab 38040, Pakistan. http://www.pshsciences.org/wp-content/uploads/2018/05/ICHS2016Proceedings_32.pdf

FAO (2011). Price and Market-Structure Analysis for Some Selected Agricultural Commodities: Marketing Costs and Margins. Food security technical secretariat/Ministry of agriculture (FSTS) FAO- Sudan integrated food security information for action (SIFSIA). Available at http://www.fao.org/fileadmin/user_upload/sifsia/docs/Marketing Cost Margin Final May 2011(2).pdf

United Nations Industrial Development Organization (UNIDO, 2019) https://www.unido.org/news/japan-and-unido-support-agro-industry-development-pakistan

UNDP (2019). Development Advocate Pakistan: Balochistan Challenges and Opportunities.

Special Issue.

https://www.pk.undp.org/content/pakistan/en/home/library/development_policy/dap-sp-issue-

balochistan.html

UNIDO (2009). Agro-value chain analysis and development: The UNIDO approach, A staff working Vienna, Austria.

USAID (2013). Apricot Value Chain Assessment Final Report for the Agribusiness Project. The Agribusiness Project (TAP) Under Sub Agreement UAP-ISC-012-001-CNFA

USAID (2011). Meat Value Chain Assessment of the Livestock Sector in Pakistan. Agribusiness Project (UAP) Under Sub Agreement UAP-ISC-012-001-CNFA

USAID Pakistan (2011). FIRMS PROJECT Agricultural Marketing Policy Reforms – Balochistan.

USAID (2009). Pakistan’s Food and Agriculture Systems.

78

World Bank (2013). Balochistan Development Issues and Prospects (2012). Islamic Republic of Pakistan Balochistan Needs Assessment Development Issues and Prospects Part I - Main report No: ACS2258 January 2013. Pakistan Country Management Unit South Asia Region.

http://documents.worldbank.org/curated/en/965761468334151857/Main-report

World Bank (2009). PAKISTAN, NWFP Growth Policy Note. Poverty Reduction and Economic

Management Sector Unit South Asia Region. Report Number. 44436-PK. Available at

http://documents.worldbank.org/curated/en/781921468145475286/pdf/444360v20ESW0B00Polic

y0Note000final.pdf

79

Appendix- A: Focus Group Discussion

ن تجزیہ سیب ویلیو چی

(F) گروپ انٹر ویو_

ــــــ نوٹ ــــــــ ــنام سہولت کار ــــــــــ ـــ ـــــــ ــ تاریــــخ ــــــــــــــــ ـــــــ ــــــــ ـــــــ لیے والا ـــــــــ

کاء کی تفصیلات 1 ۔ شر

موبائل

ٹی وی /

اخبار

خاندان

)تعداد(

تحصیل

و ضلع

بنیادی

پیشہ

سیب

رقبہ

ایکڑ

کھیت

رقبہ

)ایکڑ(

عمر

)سال(

ازدواجی

حیثیت نام تجربہ تعلیم

نمبی

شمار

2 ی۔ منڈی تک رسائ

فاصلہ مقام کلو میبی گھنیی

مرکزی سیک

مقامی منڈی

مرکزی منڈی

۔1

۔2

۔3

۔4

۔5

موجودہ فصلات -3

نام فصل سماٹی )ایکڑ( گرماٹی )ایکڑ( باغات )ایکڑ(

۔1

۔2

۔3

۔4

۔5

80

(2020رقبہ زیر مختلف اقسام سیب )۔ کل 4

ایکڑ پیداوار )کریٹ )ی( کلو18تا 16ف ایکڑ(

ی قسم سیب رقبہ )ایکڑ( کل تعداد درخت )ف

۔1

۔2

۔3

۔4

۔5

۔ ذرائع آبپاشر 5

۔ دوسے )٪(4 ۔ خرید شدہ پاٹی )%(3 ۔ کاریز /چشمہ )%(2 ۔ ٹیوب ویل)%( 1

۔ آبپاشر سے متعلقہ مسائل 6

۔ دوسے 5 ۔کچی نالیاں 4 ۔ بجلی کی فراہمی میے تعطیل 3 ی پاٹی 2 ۔ گرتازیر زمیے کی کیماٹی 1 ۔ پاٹی

خوراک 7ی۔ فصلائ

ی فصلاٹی خوراک سیب پودے کھاد زیر یات مشیبی

٭ذرائع

٭٭مسائل

رقم ی

٭٭٭ادئیگ

۔ دوسے 4۔ محکمہ زراعت 3۔ پرائیویٹ نرسی 2۔ اپنی نرسی 1٭۔ذرائع :

1٭٭ ۔مسائل : یت دستیاٹی عدم ۔ بوق4۔ عدم دستیاٹی 3۔ کم معیار 2۔ مہنگ

۔ دوسے 5دستیاٹی

: ی

2۔ تقد 1٭٭٭۔ رقم ادئیگی

3۔ بوقت کٹاٹی ادائیگی

۔ دوسے4۔ اقسا ط میے ادائیگ

۔ قرضہ مقصد اور ذرائع8

۔ ناں 2 ۔ ہاں 1٭ استعمال زرعی قرضہ ۔

ــ ــــــ ــــــ ــــــــ ـــــــ ــــــــ ـــــــ ـــــــ ــــــــ ـــــــ ٭٪ زمیندار استعمال قرضہــــــــــــــــــ

٭ ذرعی قرضہ مقاصد

نگ ۔ پراسیس3۔ ماکیٹنگ 2۔ پیداوار 1

٭ ذرائع

غبے ادارہ جاٹی ۔ 2۔ ادارہ جاٹی 1

81

٭ ادارہ جاٹی ذرائع

۔ دوسے 3۔ررعی ترقیاٹی بینک 2۔ تجارٹی بینک 1

٭ مسائل ادارہ جاٹی قرضہ

ح سو د 3۔ لمبا ریقہ کار 2۔ رساٹی 1 ۔ دوسے 4۔ ذیادہ سر

٭ غبے ادارہ جاٹی ذرائع

ح سود 3 ۔ آڑتھی 2۔اینٹ ڈیلر 1 ۔ دوسے4 ۔ زیادہ سر

٭غبے ادارہ جاٹی قرضہ لینی کی وجوہات

وسے د۔ 3۔ رین کی سر نہ ہونا 2۔ آساٹی سے دستیاٹی 1

وں کے مسائل ٭ غبے ادراہ جاٹی قرض

و ط 1 ۔ دوسے4 ۔ کم رقم 3۔ مہنگا 2۔ مشر

9) ایکٹرن۔ سیب کے انتظامی ور اور طریقی )ف

درخت )تعداد (

اقسام سیب )٪(

اعلی قسم پیداوار)٪( اور )کلو(

درجہ پیداوار)٪( اور )کلو( دوسے

کٹاٹی کے بعد کے نقصانات )٪(

کٹاٹی سے پہلے کے نقصانات )٪(

ایکڑ پیداواری لاگتن ف

عددی قسم تعداد /مقدار قیمت ف

درخت

باغ لگانا )مزدور(

گوبر

مزدوری

کھاد کو ریاجوری

DAP

NPK

دوسا

مزدوری کھاد

82

زہر یات استعما ل

مزدوری

چھریاں )بند بنانا (

کدال

شاخ تراشر

درخت پتلا کرنا

کٹاٹی

پاٹی خرچ )اپنا(

خریدا ہوا

۔ پیداواری مسائل 10

اجزا 2۔ غبے معیاری اجزا 1یوں کی مزاحمت 4۔ کم بارش /پاٹی کم 3۔ مہنگ ی ۔ کبے

۔ دوسے 7۔ تکنیگ مہارت کی کمی 6۔ پیسہ کمی 5

۔ ان پیداواری مسائل کے سیب کے پیداوار پر اثرات 11

۔ اونچ 3۔ درمیانہ 2 کم -1

۔ دستیائی زراعت توسیع خدمات 12

۔ ناں 2۔ ہاں 1

٭ زرائع

پسندزمیندار /کاشتکار 3۔ محکمہ زراعت 1ی۔ ساتھی زمیندار 5۔ ڈیلر 4۔ ترف

۔ دوسے 6

13 ی۔ سیب کی قبل اور بعد از کٹائ

٭ کٹاٹی طریقہ

ی 2۔ ہاتھ 1 وسے د۔ 3۔ مشیے

میے مسائل ٭ سیب کی کٹاٹی

۔ 5۔ سیب کا گرنا 4۔ اوزار کی کمی 3۔ زیادہ گرمی 2 ۔ ہبی مند مزدوروں کی کمی 1

دوسے

83

۔ناں 2۔ ہاں 1۔ کیا کاشتکار سیب سٹور کرتی ہی ۔ 14

کریٹی مقام مقدار قسم سیب وقت/مہینہ مدت کرایہ ف

۔ وجہ استعمال ٹھنڈا گودام 15

بڑھانا 1 ی

۔ مارکیٹ میے زیادہ مقدار سے بیچنا 3۔ اچھی قمیات کا انتظار کرنا 2۔ شیلف زندکی

٭ مقام ٹھنڈا گودام

۔ دور دراز2۔ لوکل /مقامی 1

٭ وجہ استعمال ٹھنڈا گودام دور دراز

۔ مرکزی مارکیٹ سے 4غبے معیاری خدمات ۔3مہنگا مقامی 2۔عدم سستماٹی مقامی گودام 1

۔ دوسے 6۔ مقای مارکیٹ کی کم کھپت 5قربت

۔ ٹھنڈا گودام سے متعلقہ مشکلات 16

یں اکھنی 5۔ سیب خراب ہونا 4 ۔ مہنگا 3۔ دوردراز ہونا 2۔ کم صلاحیت /جگہ 1 ی ۔ کنی چبے

۔ دوسے 6سٹور ہونا

۔ سیب کاتناسب جو خراب ہو اور اس کی وجوہات 17

۔ وضع مارکیٹنگ18

( ۔ دوسا )منکت3 ۔ٹھیکیدار 2۔ خود 1

ـــــ اختتام کٹاٹی مہینہ/تاریخــــــــــــــــ ــــــــ ـــــــ ــــــــ ـــــــ ــــــــ ـــ ٭ابتدا کٹاٹی مہینہ /تاریــــخ ــــــــــ ـــــــ ــــــــ ـــــــ ــــــــ

٭ وجوہات خود مارکیٹنگ /عدم فروخت ٹھیکدار

بدیر 2نہیے رکھتا ۔ ٹھیکدار خیال1ی

۔ کم قیمت 4۔ باربار گفت شنیدبابت قیمت باغ 3۔ ادائیگ

۔ دوسے 5پیش کش

84

ہیے ؟ ٭ اگر فروخت بذریعہ ٹھیکدار تو بتائیے کس سٹیج پر فروخت کرتی

۔ دوسے 3۔ جب فصل پک جائی 2۔ پھول کے وقت 1

٭ وجوہات فروخت باغ بذریعہ ٹھیکدار

ورت 2ہبی کی کمی 1 ۔ دوسے 4 ۔ کم خطرہ 3۔ نقد کی ضی

۔ سیب کی فروخت کے مقامات /مارکیٹ 19

ے ۔ دوس5۔ اسلام آباد 4۔ لاہور 3۔ کراجی 2۔ کوئٹہ 1

٭ وجوہات ایک خاص مارکیٹ میے بھیجنی ک

2اچھی قیمت ملنا ۔1 ی

۔ 5۔ مقامی منڈی کی کم صلاحیت 4۔ قرضہ دستیاٹی 3۔ وقت پر ادئیگ

دوسے

ہیے ؟ ۔ ناں 2۔ ہاں 1٭ کیا ایک خاص آرتھی سے فروخت کرواتی

وجوہات براتی فروخت از آڑتھی خاص ٭

۔ 3۔ قرضہ 2۔ قابل بھروسہ 1 ۔ دوست /رشیی دار 4۔ خوراک اور رہائش دیتا ہے

۔ دوسے 6۔ اچھی قیمت پر فروخت کرتا ہے 5

گ ۔مارکیٹن20

کریٹ طریقہی مارکیٹنگ اخراجات روت ف

پیکجنگ مواد

کٹاٹی

گریڈنگ

پیکنگ

ٹرانسپورٹ

مزدوری

سٹور

کمیشن

فیس /ٹیکس

دوسے

85

۔ نقصانات )٪( 21

سگرمی قبل از مارکیٹنگ بعداز مارکیٹنگ

کٹاٹی

گریڈنگ

سٹور

ٹرانسپورٹ

دوسے

۔قیمتوں کا رویہ 22

۔ ۔ ناں 2۔ ہاں 1٭ کیا قیمتوں میے اتار چڑھائو ہوتا ہے

پینی وجہ مختلف قیمتی وقت مہینہ / ہفتہ قیمت ف

وع موسم کا سر

موسم درمیان

موسم اختتام

ی ہیے ؟ ٭ ۔ ناں 2۔ ہاں 1کیا آپ قیمت سے مطمیی

ـــــــــ ـــــــ ــــــــ ـــــــ ــــــــ ـــــــ ــــــــ ـــــــ ــــــــ ـــــــ ــــــــ ــــــاگر ناں تو وجوہات بتائیے ـــــــــــ ـــــــ ــــــــ ـــــــ ـــــ ــ ــــــــ ـــــــ ـــــــ ــ

٭ کم قیمت بوجہ

۔ ذیادہ مال 4۔ مارکیٹ میے درآمد شدہ مال ہونا ۔ 3۔ صحیح گریڈنگ اور پیکنگ نہ ہونا 2۔ غبے معیاری سیب 1

ہ ۔ فروخت /بولی طریقہ کار غبے شف 5جمع ہونا اف ہونا وغبے

۔ سیب کی مارکیٹنگ می درپیش مشکلات 23

۔ ریلف ٹرک عدم دستیاٹی 4۔ خراب روڈ 3۔ عدم دستیاٹی قرضہ 2۔کم قیمت 1

۔ دوسے8۔ غبے معیاری سیب 7یاٹی ۔ جدید پیکنگ سہولیات کی عدم دست6۔ سیب کی در آمد 5

٭ سیب کے خریدار کون ہیے آپ کے علاقہ میے ؟

۔ دوسے 4۔ پراسیش 3۔ تاجر 2۔ٹھیکدار 1

فنن مشورے ملتی ہی ؟ ۔ کیا کا24ی ۔ ناں2۔ ہاں 1شتکاروں کو کوئ

٭ اگر ہاں تو ذریعہ بتائیے ۔

۔ دوسے 4۔ ساتھی کاشتکار 3۔ 2۔ محکمہ زراعت 1

میے مشورے ملے؟اور کتیی مفید تھے ؟ ٭ کن شعبوں

NGOs

86

۔ ضلع/تحصیل /گائوں می سیب کے کاشکاروں کی تعداد 25

موجودہ خریدار مقامی اور غبے مقامی/

تفصیل

/ تجارٹی راسیی

تفصیل

پراسیسنگ سہولیات مینوفیکونگ

سہولیات/تفصیل

اندازہ تعداد

٭ضلع میے دوسی سہولیات کی دستیاٹی

کولڈ سٹور سہولیات )صفاٹی

وں مکوڑوں سے بچائو (کا / ی کبے

معیار

یل / دکانیے پیکنگ میبی

)تعداد اور تفصیل ( / کارخائی

خوراک کا معیار چیک کرتی کی

سہولیات )صوباٹی /مرکزی(

exportE )کلو یقیمت )ف

ٹرک اور کرایہ ی ٹرانسپورٹ /ائبے کنڈیشن )تعداد( ٹرانسپورٹ عام تعداد کریٹ ف

طریقی اپناتی ہی ؟26ی۔ کیا آپ درجہ ذیل بعد از کٹائ

اگر ناں تو وجہ

بتائیے

کٹاٹی کے لیی خاص بیگ کا استعمال ہاں ناں

سیب کی یکسا درجہ کی پیکنگ

گریڈنگ

A اور Bگریڈ کا عدم استعمال

لکڑی کے کریٹ کا استعمال

کاربو سٹیڈ کارٹن کا استعمال

ہ ( کی تیاری اور فروخت پروسسنگ )ڈبہ۔ جوس ۔وغبے

٭ مزید تفصیلات یہاں درج کریں ۔

ن 27 جوانوں کا کردار سیب کی پیداوار اور مارکیٹنگ می and۔ خواتی

87

ی نوجوان مرد ی نوجوان خواتیے پیداوار خواتیے

کٹاٹی

سٹورنگ

پراسیسنگ

دوسے

ی اور نوجوانوں کے کردار کے حوالےسے مزید تفصیلات : ٭ سیب کی مارکیٹنگ میے خواتیے

ن /نو جوان بابت سیب مارکیٹنگ 28 کت خواتی ۔ وجوہات کم /عدم شر

ی کیلئی تجاویز ن کی بہٹی ۔ APPLE 29 ویلیوچی

88

Appendix-B Survey for Apple Value Chain Actors in Balochistan

DISTRICT: [single-select] CATEGORY: FARMER 1. Gender of the farmer [Single-select]

□ Male □ Female

2. How many family members do you have? [Numeric]

3. Which varieties do you grow at your farm?

□ Kaja □ Mashadi □ Tor Kulu □ Shin Kulu □ Amri

4. How many men and women do you employ on the farm? [Numeric/multi-select]

□ Men: ____ Women: ____ □ Don’t know □ Not Answered

5. Have you received any training on farm practices?

□ Yes (If yes, go to 5a) □ No □ Don’t know/remember

5a. When was the last time you received any training on farm practices? [Numeric/single-select]

□ Year: ________________ □ Never □ Don’t know/remember

6. How much do you produce (in kilos) every year? [Numeric/multi-select]

□ Minimum ___________ KG □ Maximum _________ KG □ Not Answered

7. Approximately how many kilos of apple do you lose every year? [Numeric/multi-select]

□ Minimum ___________ KG □ Maximum _________ KG □ Not Answered

8. To whom do you sell your product? [multi-select? Confirm with value chain expert]

□ Aarthi/Commission Agent □ Wholesaler □ Middle-men (beopari/trader) □ Other

9. What is your average annual income? [Numeric/multi-select]

□ Minimum Rs. ___________ □ Maximum Rs. __________ □ Not Answered

10. Location of the farm [auto-populated]___________________________________________

89

DISTRICT: [single-select] CATEGORY: MIDDLE-MAN

1. How do you add value to the apple value chain? [multi-select]

□ Transport □ Storage □ Contract Farming

□ Credit Lines to Farmers

□ Package Material Provider

□ Other: ___

2. How many family members do you have? [Numeric]

3. How many men and women do you employ? [multi-select/numeric]

□ Men: ____ Women: ____ □ Don’t know □ Not Answered

4. How many kilograms of apple do you buy/move every year? [multi-select/numeric]

□ Minimum ___________ KG □ Maximum _________ KG □ Not Answered

5. To whom do you sell your product? [multi-select?-confirm with value chain expert]

□ Cold Chain Owner

□ Trader □ Retailer □ Supermarket □ Arthi/Commission Agent

□ Other: ____

6. What is your average annual income (on apples)? [multi-select/numeric]

□ Minimum Rs. ___________ □ Maximum Rs. __________ □ Not Answered

7. Location [auto-populated

DISTRICT: [single-select] CATEGORY: COLD-CHAIN FACILITY OWNER

1. How many employees do you have? [Numeric]

2. From whom do you purchase your apples? [Multi Select- confirm with value chain expert]

□ Trader □ Retailer □ Supermarket □ Mandi □ Other ___________

3. To whom do you sell your purchase? [Multi Select- confirm with value chain expert]

□ Trader □ Retailer □ Supermarket □ Mandi □ Other ___________

4. Do you have ethylene control unit (ethylene scrubber) in your facility? [Single select]

□ Yes □ No □ Don’t know

5. Is there any semi-processing in your facility? [multi-select]

□ Washing □ Grading □ Waxing □ No semi-processing

□ Don’t know

6. Is there a quality control of products prior to their storage in your facility? [Single select]

□ Yes □ No □ Don’t know

7. At what capacity does the storage facility operate? [Single Select]

□ 90% – 100% □ 70% – 89% □ 50% – 69% □<50% □ Don’t Know

90

8. Location [auto-populated]__________________________________________________

DISTRICT: [single-select] CATEGORY:WOLESALER/RETAILER

1. How many family members do you have? [Numeric]

2. How many men and women do you employ? [Numeric/multi-select]

□ Men: ____ □ Women: ___ □ Don’t know □ Not Answered

3. From whom do you buy your apple produce? [Multi Select- confirm with value chain expert]

□ Farmer □ Trader □ Aarthi/ commission agent □ Mandi □ Other __________

4. How many kilograms of apple do you buy/move every year? [Numeric/Multi- select]

□ Minimum__________ KG □ Maximum__________ KG □ Don’t know

5. What type of apple do you buy/move/sell? [multi-select]

□ Kaja □ Mashadi □ Tor Kulu □ Shin Kulu □ Amri

6. Which of the following do you have access to: [multi-select] □ Transport □ Cold Storage □ None of the above

7. What type of packaging material do you use and where do you get it from?

8. How many kilograms of apple do you lose per year due to lack of certain logistics (transportation, storage etc.)?

□ Minimum__________ KG □ Maximum__________ KG □ Don’t know/Not Answered

9. To whom do you sell the product? [Multi select] □ Retailer □ Cold Storage □ Trader □

Processor/Exporter □ Other

10.

What is your annual income on apple? [Numeric/Multi-select]

□ Minimum__________ KG □ Maximum__________ KG □ Don’t know/Not Answered

11.

Location [auto-populated]__________________________________________________

Appendix C: Primary products in Balochistan (2017-18)

Crops Area in Hectares

Production in Tonnes Yield (Kg/Ha)

Value (Million PKR)

RABI CROPS

91

Wheat 394443 935375 2371.382 31943.06

Barley 10637 14196 1334.587 596.23

Rape Seed/ Mustard 14197 10697 753.469 558.70

Cumin 4785 2238 467.7116 1157.91

Gram 38563 32569 844.566 4653.72

Mutter Pulse 9927 5896 593.9357 417.44

Masoor 1674 1118 667.8614 87.26

Vegetables 17204 274495 15955.3 743.48

Fodder 17068 565502 33132.29 7238.43

Canola 3335 2209 662.3688 143.59

Sunflower 193 318 1647.668 9.54

Total Rabi Crops 512026 1844613

47549.35

KHARIF CROPS

Rice 169803 553828 3261.591 5186.73

Sorghum (Jowar) 18623 15610 838.2108 768.01

Millet (Bajra) 2972 1823 613.3917 85.32

Maize 2935 3013 1026.576 99.65

Sesamum 5688 3654 642.4051 420.58

Castor seed 1215 1370 1127.572 79.73

Moong 4658 3165 679.4762 302.02

Mash 3290 2916 886.3222 387.10

Moth 1332 1544 1159.159 132.17

Fruits 203207 995985 4901.332 99720.01

Onion 35690 680286 19060.97 24609.35

Potato 1487 23405 15739.74 550.79

Vegetables 16621 120841 7270.381 16361.23

Melons 8650 100467 11614.68 3230.85

Chillies 4111 6268 1524.69 1189.35

Fodder 17413 537961 30894.22 6885.90

Coriander 1821 1046 574.4097 35.77

Garlic 1057 9210 8713.34 1030.14

Guar Seed 6427 4235 658.9389 257.49

Tobacco 983 1435 1459.817 172.20

Sugarcane 855 43400 50760.23 629.30

Cotton 35491 47131 1327.97 4006.14

Total Kharif Crops 544329 3158593

166139.83

GRAND TOTAL 1056355 5003206

213689.18

Source: Crop Reporting Services (2017-18) and Economics & Marketing Section (Quetta wholesale market prices, 2017-18), Agriculture Extension Department, Balochistan.

Appendix D: Primary products in district Quetta

CROPS Area in Hectares Production in Tonnes

Yield in Kgs / Ha:

Value in million PKR

RABI CROPS

Wheat 2,500 5,183 2,073 177.00

Barley 190 288 1,516 12.10

92

Cumin 100 51 510 26.39

Vegetables 255 3,741 14,671 134.82

Fodder 240 6,290 26,208 80.51

Total Rabi Crops 3,285 15,553

430.81

KHARIF CROPS

Other Fruits 3,049 20,779 6,793.66 2,045.90

Apple 1,336 11,937 10,185 1,052.71

Onion 370 6,852 18,519 247.87

Potato 35 525 15,000 20.27

Vegetables 323 2,434 7,536 135.25

Melons 60 782 13,033 25512.75

Fodder 203 6,012 29,616 76.95

Total Kharif Crops 5,376 49,321 --- 29091.70

GRAND TOTAL 8,661 64,874 --- 29522.51

Source: Crop Reporting Services (2017-18) and Economics & Marketing Section (Quetta wholesale market prices, 2017-18), Agriculture Extension Department, Balochistan.

Appendix E: Primary products in district Killa Abdullah

CROPS Area in Hectares Production in Tonnes

Yield in Kgs / Ha:

Value in million PKR

RABI CROPS

Wheat 2,500 5,183 2,073 177.00

Barley 190 288 1,516 12.10

Cumin 100 51 510 26.39

Vegetables 255 3,741 14,671 134.82

Fodder 240 6,290 26,208 80.51

Total Rabi Crops 3,285 15,553

430.81

KHARIF CROPS

Other fruits 3,119 6,631 7,160.89 798.91

Apple 5,635 26,072 8,814 2,299.70

Onion 370 6,852 18,519 247.87

Potato 35 525 15,000 20.27

Vegetables 323 2,434 7,536 135.25

Melons 60 782 13,033 25512.75

Fodder 203 6,012 29,616 76.95

Total Kharif Crops 5,376 49,321 --- 29091.70

GRAND TOTAL 8,661 64,874 --- 29522.51

Source: Crop Reporting Services (2017-18) and Economics & Marketing Section (Quetta wholesale market prices, 2017-18), Agriculture Extension Department, Balochistan.

Appendix F: Primary products in district Pishin

CROPS Area in Hectares Production in Tonnes

Yield in Kgs / Ha: Value in million PKR

RABI CROPS

Wheat 3524 6993 1984.39 238.81

93

Barley 257 499 1941.63 20.96

Cumin 23 18 782.61 9.31

Vegetables 136 2300 16911.76 70.23

Fodder 143 5269 36846.15 67.44

Total Rabi Crops 4083 15079

406.76

KHARIF CROPS

Other fruits 11028 55708 6600.00 6223.27

Apple 6877 31713 9035.04 2796.74

Onion 133 2425 18233.08 87.72

Potato 183 3492 19081.97 82.18

Vegetables 942 7478 7938.43 326.05

Melons 562 5549 9873.67 207.05

Chillies 41 62 1512.20 11.76

Fodder 612 22910 37434.64 783.52

Tobacco 293 405 1382.00 48.60

Total Kharif Crops 20671 129742 --- 10566.89

GRAND TOTAL 24754 144821 --- 10973.65

Source: Crop Reporting Services (2017-18) and Economics & Marketing Section (Quetta wholesale market prices, 2017-18), Agriculture Extension Department, Balochistan.

Appendix G: Primary products in district Killa Saifullah

Crops Area in Hectares Production in Tonnes Yield in Kgs / Ha: Value in million PKR

RABI CROPS

Wheat 9910 19391 1956.71 662.20

Barley 990 1323 1336.364 55.57

Cumin 52 29 557.6923 15.00

Vegetables 1442 23993 16638.7 70.23

Fodder 68 2587 38044.12 33.11

Sunflower 20 21 1050 0.63

Total Rabi Crops 12482 47344

836.75

KHARIF CROPS

Maize 120 125 1041.667 4.13

Moong 52 21 403.8462 2.00

Mash 53 28 528.3019 3.72

Fruits 63735 352127 5524.861 9049.057

Apple

24029.3

Onion 540 9820 18185.19 355.24

Potato 495 6950 14040.4 922.61

Vegetables 3110 22801 7331.511 1951.77

Melons 472 5033 10663.14 187.79

Chillies 350 530 1514.286 100.57

94

Fodder 96 3725 38802.08 47.68

Garlic 76 572 7526.316 63.98

Tobacco 550 826 1501.818 99.12

Total Kharif Crops 69649 402558

36816.97

GRAND TOTAL 82131 449902

37653.72

Source: Crop Reporting Services (2017-18) and Economics & Marketing Section (Quetta wholesale market prices, 2017-18), Agriculture Extension Department, Balochistan.

Appendix H: Primary products in district Kalat

Crops Area in Hectares

Production in Tonnes

Yield in Kgs / Ha:

VALUE IN MILLION PKR

RABI CROPS

Wheat 4745 9965 2100.11 340.30

Barley 412 571 1385.92 23.98

Cumin 1335 559 418.73 289.22

Vegetables 138 2040 14782.61 121.75

Fodder 316 10265 32484.18 131.39

Total Rabi Crops 6946 23400 906.64

KHARIF CROPS

Other fruits 2617 13964 7675.96 1449.04

Apple 1867 20455 17160.23 1803.91

Onion 2575 56565 21966.99 2046.24

Potato 285 4290 15052.63 100.96

Vegetables 1154 9768 8464.47 405.45

Melons 21 252 12000.00 9.40

Chillies 74 113 1527.03 21.44

Fodder 256 12261 47894.53 156.94

Coriander 90 53 588.89 1.81

Total Kharif Crops 10806 138176 5995.20

GRAND TOTAL 17752 161576 6901.84

Source: Crop Reporting Services (2017-18) and Economics & Marketing Section (Quetta wholesale market prices, 2017-18), Agriculture Extension Department, Balochistan.

Appendix I: District and Tehsil-wise distribution of apple value chain actors District Quetta

Category District Quetta

Farmer Population 700

Sample 35

Large Farmer Selection Criteria

3 Tehsil level distribution could not be followed in Quetta as division of tehsils was unclearfor enumerators

95

Medium Farmer 11

Small Farmer 21

Cold Storage Population 12

Sample 12 only 12 cold storgaes were found in the city

Pre-harvest Contractors

Population 100

Sample 20

Urban Selection Critera

9

Rural 7

Commission Agents

Population 258

Sample 25

Urban Selection Critera

11

Rural 14

Retailers Population 2000

Sample 100

Urban Selection Critera

44

Rural 56

Wholesalers Population 866

Sample 33

Urban Selection Critera

19

Rural 24

*Large Farmer: Orchard size >25 Acres (>4000 crates)

Medium Farmer: Orchard size 5 to 25 Acres (1000 - 4000 crates)

Small Farmer: Orchard size <5 Acres (<1000 crates)

District Killa Abdullah

Category District Killa Abdullah

Tehsil Gulistan

Tehsil Killa Abdullah

Tehsil Dobandi

Tehsil Chaman

Farmer Population 2914 1050 1159 700 5

Sample 146 55 64 21 6

Large Farmer Selection Criteria

12 7 5 0 0

Medium Farmer

79 33 41 4 1

Small Farmer 55 15 18 17 5

Cold Storage Population 14 2 12

Sample 14 2 12

Pre harvest Contractors

Population 725 300 300 100 25

Sample 30

*Big Farmer: Orchard size >25 Acres (>4000 crates)

96

Medium Farmer: Orchard size 5 to 25 Acres (1000 - 4000 crates)

Small Farmer: Orchard size <5 Acres (<1000 crates)

Sample Size for Large farmers in Tehsil Gulistan was slightly revised due to access/availability

Sample size for Tehsil Dobandi was revised as no large farmers were found in that area.

District Pishin

Category District Pishin

Tehsil Barshore

Tehsil Karezat

Tehsil Bostan

Tehsil Hurmzai

Tehsil Pishin

Tehsil Saranan

Farmer Population 3250 700 800 200 500 1000 50

Sample 163 34 40 10 29 50 0

Large Farmer Selection Criteria*

9 1 2 1 2 3 0

Medium Farmer

51 11 13 3 7 16 1

Small Farmer 104 22 25 6 20 31 0

Cold Storage Population 1 0 0 0 0 1 0

Sample 1 0 0 0 0 1 0

Pre harvest Contractors

Population 425 115 75 45 85 105 0

Sample 20 0

*Large Farmer: Orchard size >25 Acres (>4000 crates)

Medium Farmer: Orchard size 5 to 25 Acres (1000 - 4000 crates)

Small Farmer: Orchard size <5 Acres (<1000 crates)

District Killa Saifullah

Category District Killah Saifullah

Tehsil Muslimbagh

Tehsil Killah Saifullah

Tehsil loiband

Farmer Population 3840 2100 1200 540

Sample 193 105 60 28

Large Farmer Selection Criteria

36 7 19 10

Medium Farmer 65 25 32 8

Small Farmer 92 73 9 10

Pre harvest Contractors

Population 21 11 7 3

Sample 20

97

*Large Farmer: Orchard size >25 Acres (>4000 crates)

Medium Farmer: Orchard size 5 to 25 Acres (1000 - 4000 crates)

Small Farmer: Orchard size <5 Acres (<1000 crates)

Sample sizes for large farmers in Muslimbagh and Tehsil KS were revised/reduced- this is mainly due to the terrain of the area and the recent droughts that have resulted in uprooting of apple orchards

Later it was found that Muslimbagh has fewer large and medium farms hence sample was further reduced but KS tehsil has more large farms hence sample was increased for large/medium farms

Appendix J: List of stakeholders interviewed

S.No Name Organization

1 Mr Faizullah Shah Secretary Market Committee, Quetta wholesale Market.

2 Mr Inam Ul Haq Ex. Director General, Agriculture Extension Department Balochistan.

3 Dr Javed Tareen Ex. Director General, Agriculture Research Department Quetta.

4 Syed Sadiq Agha Deputy Director, Agriculture Research Institute, Quetta.

5. Miss Dori Semi Director Extension (Women división), Agriculture Extension Department Quetta.

6. Mr Abdul Salam Baloch Ex Secretary and Ex Director General Agriculture Extension, Balochistan.

7. Mir Naseer Shahwani Member Provincial Assembly and Former President, Zamindar Association, Balochistan.

8. Mr Kazim Khan Progressive farmer and exporter

9. Mr. Naqibullah Nasar Deputy Director, Technical, Balochistan Food Authority, Quetta.

10. Mr Syed Qayamuddin Zarghoon Zarai Markez (Inputs dealer)

11. Mohammad Salman Jaffar

Balochistan Agriculture College Quetta.

12. Mr Mohammad Shah Director Incubation Centre, BUITEMS, Quetta.

13. Haji Fateh Khan Member Chamber of Commerce, Quetta.

14. Haji Rafu Gul President, All Balochistan National Fruits and Vegetables Commiossion Agents Association/Exporter

15. Haji Sher Ali Bangulzai President, All Balochistan National Fruits and Vegetables Commiossion Agents Association/Exporter

16. Haji Mohammd Rafiq Fruit Trader/Exporter

17. Mr Noor Ali Achakzai Trade Development Centre, Ministry of Commerce, Quetta

18. Mr Saat Maluk Al-Niamat Fruit & Vegetable Company, Quetta.